Third quarter profit reports are out today and both Walmart and Target did well.
From Bloomberg, “Since October, Wal-Mart has cut holiday-season prices on toys, electronics, and appliances as it posted lower-than- expected sales gains last month. Before the discounting, the company had been stressing a strategy of upgrading stores and merchandise in a bid to attract more upscale shoppers.”
Whoops. Way to try to be Target, Walmart. Slashing prices got them back on track, but what about Target?
“Sales at Target stores open at least a year rose 4.6 percent in the three months ended Oct. 28, marking the 12th time in 15 quarters Target’s growth outpaced Wal-Mart.”
“Target’s customers won’t defect”, said Rick Rubin, an analyst at Mercantile Bankshares Corp. in Baltimore, with $22 billion in assets including Target shares.. “Target seems to have more of a connection to its consumer.”
Judging by the comments on this website, we’d have to agree.— MEGHANN MARCO