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?