Consumers are cutting back — and the AP says that shoppers are abandoning Target for even cheaper stores. In addition, Target’s credit card division is running into trouble as shell-shocked shoppers aren’t able to pay their bills.
The company also has seen rising delinquencies in its credit-card business, another source of trouble. The credit card business dragged down fourth-quarter results with a one-time, pre-tax loss of $135 million.
So, what do you think, is Target too expensive?
Target 4Q profit falls 41 percent amid downturn [AP](Thanks, j!)
(Photo:intangiblearts)
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Target gets my $$$ given the choice. I’m willing to pay an extra couple bucks per trip to not waste time navigating the Walmart jungle (it probably takes me an extra 10-15 mins during a Walmart shopping trip). Plus I’ve recently discovered that Target’s men’s clothing selection is dirt cheap, stylish, and is sturdy enough to last.
I’d drive past three Wal*Marts to get to a Target. Thankfully, I don’t have to. Being in a Wal*Mart honestly makes me feel depressed. Dank, dark, and dirty. Targets are well-lit, well-organized, and have friendly employees. I would rather buy less to keep my bill down than get a basketful of Wal*Mart “bargains”.
I don’t know if they’re too expensive, I just think they have 59% too many stores.
I used to think Wal-Mart was cheaper, but I recently did some price comparisons, and Target was significantly cheaper for most of the items I buy — mouthwash, toothpaste, soap, etc.
@ahoy-captain: I’ve comparrison shopped regularly, too. In my market the prices are about the same, but really, I hate both. I especially hate Target for the fact that I have to comparison shop within Target. “Are these the cheapest AA batteries or are they 25 cents cheaper on an end cap 3 isles away.” or “is it really cheaper for me to ‘buy two and save’, guess I’ll have to get out the calculator.”
The Target near me has Progresso soups for $1.52 and Milk 1gal for $3.29 while most other stores near me range from $2.29 – $3.49 and $3.79 – $4.29 respectively. I find Target is generally cheap.
I don’t care if Target is .03 or .30 higher than Wal-Mart on any given item. I shop there because the trashy ass people shopping at all Wal-Marts are NOT at Target. I don’t mind paying a tax to not have to shop with low lifers.
One thing. Target is not inherent less evil then Wal-Mart. They just don’t get the Blame Wal-Mart does due to them being the less obvious target. I remember reading about that on some heavy liberal blog a couple years back.
Depends what you’re buying. I live within shopping distance of one Target, one Kmart, and three (yes three) Walmarts… one of which is fantastic. I hate to say that about Walmart, but there it is. It’s a brand new store and has merchandise the other two dumps don’t have.
Target – they just upped some of their store-brand cereals as much as 90 cents.
Doesn’t sound like much, but it’s 20 oz. – and some Post products are 25 oz. for 11 cents less.
Now that they’ve started that, it’s back to Food Lion and Walmart, with the occasional splurge at Lowe’s Foods…
@DarianAlcestis: This is happening everywhere…it’s not a Target-only thing. Target doesn’t make any of their own items, so they are at the mercy at the company that makes the product. I work in a grocery store (with many store brand cereals being made by Quaker) and their prices have gone up and package sizes have shrunk, but there is not much that can be done unless they want to switch suppliers (which ends up costing more money), then the quality goes down.
I go to Target all the time, lately at least once or twice a week. I like their prices, and selection. However you can tell they are hurting, when they can’t keep enough people at the register on a Saturday afternoon. half the registers weren’t open and there were some serious lines this weekend.
I recently read this great comparison:
[www.cockeyed.com]
Target needs to start attacking Wal-Mart directly in their ads. Target has basically the same prices on the same items (maybe the difference is a few pennies) but, the stores are always cleaner and you don’t wait in line for HOURS at the check-out.
Target needs to make this more clear in their ads. Their ads make people think the store is fancy and expensive. That’s not going to work in this economy. Target needs a BACK TO BASICS approach to their advertising.
@cybercjh: That would seem unlikely unless Walmart pays people to trash their stores.
I’d like to point out that this “profits down 41%” figure is also meaningless unless we compare them to their competitors, too. It’s like how it’s easy to find stocks that go up in value in the middle of a bull market, and hard to find ones that don’t in the middle of a bear market. You have to compare them to peers to be able to draw meaningful conclusions about what the figures mean.
@johnva: Good point AND the profits are down but still existent .
If you know or shop your prices this should be no surprise to no one .But I also read where they want to be step above Walmart .I guess they are/were .
I think Target traveled on perception as much as anything .The perception they were better than Walmart and the misperception they were as cheap .
SHOP and PAY ATTENTION to prices any where you go and on anything you read like the Sunday flyers .
Focusing on the 41% profit decline makes a sensationalist headline but doesn’t imply the Target is too expensive. Same store sales are “only” down 5.9% which isn’t bad compared to other retailers.
Same Store Christmas Sales 2007-2008:
[jetfuelcafe.com]
I’ve found the prices at Target to be comprable or even cheaper than other local stores. I don’t go into Wal-mart unless I am forced to, but the prices I do know seem inline with Target. I’ve found that Target brand stuff tends to be better quality, too. Their store-branded food is delicious.
I find Target a more pleasant experience. The lighting at the local Wal-mart gives me a migraine but Target doesn’t.
$20 for recent TV seasons on occasion, AND for streches of weeks at a time? That’s cheap.
Since I am a capable shopper and can find things on my own, I shop at walmart. I care more about saving my money than if someone is nice to me.
Plus it’s too difficult to return/exchange things at Target if you lose your receipt.
@fett387: I’m FULLY capable of finding things on my own. It’s that when I walk into a Wal-Mart, things are disorganized and thrown haphazardly on the shelf, making it almost IMPOSSIBLE to find anything.
For things like clothes, etc…I don’t think they are expensive, but for their prices, I’d much rather go to the mall and get better name brands.
However, when it comes to everyday items I need for my household (diapers, household paper products, cleaning supplies, etc.), it’s insanely expensive. At Target, I can get a case of 78 of the diapers we use…for $29.99. At Walmart, I get a case of 72 of those same diapers for 18.97. Similar differences for things like paper towels, laundry soap, etc.
A couple weeks ago, we went to the Target store here to buy a couple carseats (a brand that isn’t carried anywhere else in our small city). While we were there, I let my kids each pick out a new toy. Their toys were $29.99 and $22.99. The next day, I was in Walmart and noticed the same toys for $23 and $16 and change, respectively.
I don’t even go into Target unless I’m looking for something specific I can’t find elsewhere.
@bcsus83: I really like NY & Company for their business wear. It’s a lot cheaper than The Limited and I can buy 3 or 4 shirts for the price of what one shirt at The Limited would cost.
Wal-Mart is in a lot of cases, a lot cheaper than Target. That’s something Wal-Mart has been trying to do, with various levels of success. I think it has a lot more to do with how you feel shopping at Wal-Mart, which probably makes up a huge portion of the toy manufacturer’s revenue stream, possibly causing the manufacturer to offset the cost of production and push the costs to other retailers.
Yes, target is a bit pricier than Walcrap, but I still prefer it.
I use my debit card for all of my Target purchases, so I LOVE their return policy if I’ve lost my receipt. They just look it up with my debit card. It is so easy!
I always find great clearance deals at Target. From food and toiletries to home decor, video games, household appliances and more.
@Boulderite: They do that with credit cards too.
The only stuff I buy at T. is food.
The last time I did some comparing of prices it was on computers and I ended up buying at WalMart, those stores are a lot junkier than T but the prices are better and they don’t give you a load of BS about returns without a receipt like T does.
I really don’t like either chain but for lower prices you really have to go first to WalMart.
http://www.targetfiling.blogspot.com
People are just shopping less. We are just shopping for necessities. No extra packs of gum because we might need it. I think consumers are just buying what we need as we go. I think this could eventually hit wholesalers too such as Costco.
I’ll stick w/ Target, I don’t feel dirty and violated when I leave, like I do exiting a Walmart. First thing I do after shopping at Walmart is go home a take a shower.
I Love Target! I don’t have to deal with the usual crowds that are all over Walmart, and I can actually see myself buying their store brand items. I really like the Home Decor dept and the guys clothing. I’ve bought wuite a few shelves, curtains, etc from there and have always been happy with the quality. As for the clothing, I’ve only bought a few things there, but I usually walk through and am impressed that it is reasonably good wuality clothes for a cheap price.
I noticed both Target & Wal-mart, for the most part, are keeping their prices artificially high. Besides the cost of manufacturing, the largest expense by far in the retail / wholesale business is shipping. Last year when gas / oil prices where artificially high, all stores took a big hit in shipping costs. Of course conveniently the government doesn’t use oil & gas in their published inflation index, which is completely idiotic, but I digress… In any event, many of these stores are keeping their price point sales artificially high. Even though shipping costs have dropped significantly, stores generally are keeping prices higher than they were last year. I noticed K-mart used this technique a while back, when their management took the money and ran. (This was before K-mart used Sears money, to buy Sears and bolster their portfolio.) It’s rather obvious that Circuit City management is setting this new precedent, where they can keep prices artificially high, then make a run for the the new Pirate’s hideaway in Dubai, while leaving everyone else holding the proverbial shopping bag. It’s a brave new world! ‘Freedom from Regulation’ really worked for corporate criminals and it’s still working…
I was quite surprised when the Target cashier offered me an application to apply for a Target DEBIT card. The card would be tied to my bank account. I can see how this would benefit Target, as the card allows them to receive their money immediately, but for me, the consumer, that is an awful idea. I don’t need an additional card tied to my bank account, and the cashier’s attempt to convince me by saying that my purchases will benefit preschools didn’t cut it for me.
I like Target. I shop at Walmart and ALDI’s. Also three different grocery stores that are near me.
I find some stuff at the groceries that the others don’t have. Mostly ALDI’s for groceries, but there are some things that I must have brand name on. The Target here is too far away and the Walmart and ALDI’s are both within walking distance of my house.
And there’s the added entertainment of laughing at their new logo.
If I can buy something for less at Wal-Mart, and I won’t have to go through hell returning it should I need to, then why would I shop at Target? Besides, in my city, they’re all the way across town, while we have 3 giant Wal-Mart Super Centers.
There’s a WM just 5 minutes from my home, and it is clean, the staff is polite, and the customers aren’t extras from “The Hills Have Eyes”. The K Mart across the street from WM, however, is like Bosnia, Chernobyl, and Ethopia rolled into one.
20 minutes from my home, there is both a Super WM and a Super Target, on opposite sites of a highway. SWM has the better food deals, while ST has better clothes deals- I found a Green Lantern insignia shirt in my size for just $10! YAY ME!
Target is not what I would call “too expensive” when it comes to some things. While WalMart regularly beats it, I still find that Target can sometimes beat the grocery stores for some household and pantry items. Their store brand is generally cheap and it compares taste and size to big brand names.
On the other hand, their clothes are over priced. I have found myself thinking, “I could probably find a better deal at the mall.” I assume that’s not what Target wants to hear. And don’t get me started on the return policy, especially related to baby shower/wedding shower stuff. People don’t always respect the registry and buy what they want to get you, even if you detest the style or have 3 of the same product in the brand you prefer. If it’s not on your registry AND you weren’t given a receipt or they lost it, then you are screwed. “Too bad, so sad,” says Target.
Target screams luxury and Wal-Mart screams white trash. End of story.
target to me has always been the more fancier version of walmart and slighty higher
I stopped shopping at Target not because of their prices, which are definitely higher than Walmart, but because of their punitive, and unfair return policy.
Attention Target corporate morons: If you cheat and humiliate people, and then say it’s ‘your policy’ don’t be surprised if they don’t come back.
I haven’t been back since January 2, 2008 when they screwed me and the rest of the gift giving public to pad their bottom line.
I will die if Target goes out of business.
I don’t even want to think about how much money I’ve spent there.
I frequently go there for food items – bagels, cream cheese, cheese and milk are always cheaper than Safeway or other stores.
We don’t have a Walmart around here, but there’s one about 10 miles away.
it’s TOO a lot things. the stores too big, they tore down a 100 year old apple orchard to put in a parking lot which is 1/4 filled. i hate walking through the entire store to buy one damn thing, which inevitably they don’t have so i have to do this again with a DIFFERENT big box store. they all stink.
i ONLY go in walmart for specific items on occasion because we no longer have independent stores. so if i WANT a toaster i have to buy it from a box or online.
I read a study that said that Target’s prices are no more expensive on grocery items and other staples.
However, I agree that people (like me!) are probably getting better at resisting the useless pseudo-designer decor-crap that Target is famous for.
This is SUCH a misconception. However, I’m fine with it so I don’t have to shop at Wal-Mart. Ug.
Target is hit-or-miss… I live in Chicago so we really don’t have Walmart to worry about, it is basically all Target…
I rely on my local target for a lot of my local (non amazon, sales tax sucks here) shopping needs. It is reasonably convenient, clean and the staff is helpful. Their food prices are usually crazy (their deals on soda are laughable compared to the soda sales of regular supermarkets) but for basic food and things like milk it isn’t that bad, especially if it saves the time and gas required to extend my trip to the supermarket for stuff that is available in another section.
I do all my grocery shopping at Target – I save about 30% over what I would spend for the same stuff at Safeway.
I have other reasons for not shopping at Target besides money. They simply don’t understand customers. Like why you should stock your shelves during off hours instead of waiting until peak shopping hours. Or the brands that are in high demand in my area that they don’t bother to carry. I am forced to shop there on occasion for a few specialty items I can’t find anywhere else, but that means going there 2-3 times per year for minimal spending.
More than being expensive, Target is boycotted by our church members because they do not exchange without a receipt – even if they have the same merchandise on the floor. Their policy is too strict.
Target is basically the walmart or kmart for the middle class. It’s cheaper, but not as cheap as the other two, but for the extra money you get a relatively safe shopping experience free of most stress, disorder, and disease. In cleanliness alone, target is utilizing the money better. But then again, Amazon has everything the box stores do, and even with atrocious shipping gets it to your door for 10% to 50% less.
Target is a mixed bag for us. We hate Wal-Mart but it’s the only game in our town. While doing some comparison online shopping, we realized that Target’s prices are in the stratosphere, particularly with home/kitchen items and electronics.
More importantly, their return policy is terrible. We have had more hassle with returns at Target than I ever do at Wal-Mart. Yes, I hate the long lines at Wal-Mart, and that their price “rollbacks” only occur after they raise the price even higher for a week, but it’s either Wal-Mart or small town grocery stores, which are even more expensive.