Target to Weigh Sale of Credit-Card Assets
Atlanta, Target Corp. said on Wednesday it was considering selling $7 billion in credit-card receivables. The company also said it will re-evaluate its use of debt and pace of share repurchases. The reviews are expected to be completed by the end of the year.
The company said it is one of the 10 largest issuers of credit cards in the United States, and regardless of the ultimate outcome, it expects to maintain its core financial services operation.
“Given our objective to create substantial shareholder value over time, we plan to approach the capital markets to determine whether Target or a financial institution is better suited to own our receivables,” said Doug Scovanner, CFO, Target. “Regardless of whether or not our review results in a receivables sale, we intend to maintain our core financial services operation and remain firmly committed to growing and developing our best-in-class Target Financial Services team.”
Target has hired Goldman Sachs to advise in the reviews.
Office Depot offers mobile store locator service
ANAHEIM, Calif. Office Depot has engaged the services of Where2GetIt, a provider of Web- and mobile-based locator technology, to help customers find nearby Office Depot stores.
Web-enabled mobile device users can log onto www.officedepot.com and enter their zip code or city and state to find nearby Office Depot locations. Users can also click the phone number in the “location results” area to be directly connected to the nearest Office Depot from their mobile phone.
“With the Where2GetIt mobile technology, customers can conveniently use mobile devices to find Office Depot locations in a matter of minutes — even when they are away from the home or office,” said Noah Maffitt, director of e-commerce for Office Depot.
Gen Y shoppers split on ‘green’ importance
ST. LOUIS “Environmentally-friendly” and “eco-conscious” have been common buzzwords among retailers lately, but what do young consumers think about the hype surrounding “green” products? According to recent Maritz survey, the answer is yes, though not as much as one might think.
The survey found that 50% of Gen Y consumers said that a retailer’s environmental policy and sustainability did not influence their shopping behavior. When asked to describe their attitude toward a retailer’s environmentally-friendly positioning, 46% said they’d shop at a retailer more if they were environmentally friendly, while 54% said it wouldn’t affect their behavior.
“Being environmentally friendly is certainly the right thing to do and we didn’t set out to debate that,” said Gloria Park Bartolone, division vice president of Maritz Research’s Retail Group. “But we thought it would be helpful for retailers, with all the marketing hype surrounding environmental issues, to know what influence this type of messaging had on customer loyalty, particularly Gen Y.”
When it comes to purchasing products, 47% of respondents said they would be willing to pay more for environmentally-friendly services, products or brands. Out of this percentage, the vast majority (77%) cited their “care about the environment” as the reason behind their willingness to pay more, with other qualifiers, such as “it’s the right thing to do” (21%) or “so that people know I’m environmentally aware” (2%) trailing behind.