Target's Holiday Struggle: Sluggish Sales and Market Share Losses

Target struggles in the holiday quarter as key sales metrics fall below expectations. Despite efforts to attract consumers with promotions and discounts, competition from retailers like Walmart has impacted Target's market share. The company's strategic moves face challenges from economic pressures and rival gains.

Target's holiday-quarter forecast suggested lower-than-expected sales and profits, as value-conscious shoppers turned to competitors like Walmart. This resulted in a steep 21% fall in Target's shares. Walmart, the world's leading retailer, recently increased its annual forecasts, benefiting from market share gains in key areas.

Target anticipated flat comparable sales for the fourth quarter, with profits ranging from $1.85 to $2.45 per share, falling short of analysts' predictions of a 1.64% sales increase and $2.66 profit per share. Despite cutting prices on numerous items, Target struggles to attract deal-seeking consumers.

Adjustments to inventory and promotions have yet to mitigate Target's market share losses, as higher-income consumers gravitate towards Walmart, according to analysts. With fewer shopping days between Thanksgiving and Christmas, Target faces stiff competition as major retailers launch early promotions.

(With inputs from agencies.)