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Quarterly profit slide at Target hints at a challenging holiday season for the retailer
Target reported a 1.5% sales decline and plans to invest $5 billion in stores and technology, including a new ChatGPT app integration, to regain growth, CEO says.
- On Wednesday, Target announced incoming CEO Michael Fiddelke plans to cut prices and invest billions as the company narrows full-year adjusted EPS to $7 to $8 from $7 to $9.
- In the latest quarter, Target's sales declined 1.5% to $25.3 billion as profit margins narrowed amid weaker discretionary spending, while comparable-store sales fell 3.8% as shoppers traded down on discretionary categories.
- To keep value top of mind, Target will invest $5 billion next year, cut prices on 3,000 everyday items, stock toys under $20, launch an OpenAI partnership ChatGPT app next week, and expand Circle 360 fulfillment.
- Investors reacted as Target shares are down 35% this year, while executives say Michael Fiddelke's turnaround plan will test whether investments can reverse declining sales.
- Officials said they expect sales to decline by the low single digits in the current quarter, while non‑merchandise revenue jumped 18%, driven by ads, memberships and marketplace.
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Target Has $5B to Lure You Back
Target plans to invest $5 billion next year to reverse its ongoing sales slump, company executives announced this week. The move is part of a turnaround strategy outlined by incoming CEO, Michael Fiddelke, who emphasized that the company's top priority is returning to growth. He said the retailer would invest...
·Miami, United States
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Target sales slide again, retailer pledges another $1 billion for stores
The retailer is planning to pump an extra $1 billion into its stores next year after critics pointed to messy stores and out-of-stock items, part of a broader effort to turn around the business under new leadership.
·United States
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Coverage Details
Total News Sources72
Leaning Left20Leaning Right5Center37Last UpdatedBias Distribution60% Center
Bias Distribution
- 60% of the sources are Center
60% Center
L 32%
C 60%
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