Dive Summary:
- While December sales for the retailer proved to be less than expected, Target maintains that their fourth quarter profit projections are secure.
- Regardless of a late surge of sales during December, the increase could not make up for the lack of traffic the first three weeks but a smart balance between investments, sales, and inventory management kept the month relatively profitable.
- While the December rush was not as successful as the retailer had hoped, larger transactions and food sales kept the lull from being as bad as executive feared.
From the article:
"...Target Corp. here conceded on Thursday that its same-store sales in December were “essentially flat,” but confirmed that its profit projections for the fourth quarter were still on track.
The report came amid what some said was a strong late-season comeback for retailers, after consumers appeared to temper their spending..."
