Target Trims Store-Opening Projections
Minneapolis Target Corp. is cutting back on its 2009 store-opening plans amid the economic slowdown, the company said on Thursday.
“We are not happy with the current pace of our sales, and we are working diligently to drive our top-line performance,” said CEO Gregg Steinhafel, speaking at an analyst and investor meeting broadcast over the Internet.
In August, Target reported its fourth straight quarterly profit decline even as Wal-Mart Stores saw profits rise from consumers seeking out bargains.
Target said on Thursday it has reduced its 2009 store-opening plans, canceling some projects that no longer make financial sense.
“We’ll now open about 70 net new stores in 2009, and we know we will open fewer still in 2010, although it’s a bit premature to speculate just how many,” said CFO Doug Scovanner.
In August, Target said that for 2009, it was projecting adding about 70 to 75 net new stores.
Target also told analysts it is working to improve results in its credit-card business.
GameStop engages mobile coupon service
SAN JOSE, Calif. GameStop has engaged Cellfire’s mobile coupon service to distribute mobile coupons redeemable at more than 4,200 GameStop retail locations in the United States and Puerto Rico. Now, instead of clipping paper coupons or printing them from the Internet, gamers can simply show the coupon displayed on their cell phone at the register to receive a discount.
“As the mobile Web emerges as a viable marketing channel, reaching our customers through their cell phones is a natural progression,” said John Brittell, vp of e-commerce and direct marketing of GameStop. “Cellfire is widely considered to be a pioneer in the mobile coupon space, and we are looking forward to working with them to enhance our promotional marketing strategy.”
Consumers access the Cellfire mobile coupon service through an easy-to-use mobile application that resides on their cell phone or through a mobile Web browser. New offers are added frequently, and users can access the Cellfire service at their convenience to discover and use discounts specific to their geographic area. Coupons are displayed in an organized manner, allowing consumers to navigate through coupons by category and select the offers they want to use.
JCPenney to limit severance pay for executives
PLANO, Texas JCPenney announced in a filing with U.S. Securities and Exchange Commission that it would limit severance pay for its senior executives.
According to the filing, severance packages would be limited to 2.99 times the annual base salary and target bonus in effect the year of termination. Stockholders may approve greater severance packages. The policy does not apply to existing agreements.