Latest news with #EnterpriseAccelerationOffice
New York Post
23-07-2025
- Business
- New York Post
Target drops popular perk for shoppers after more than a decade
Advertisement Target is dropping its price-matching policy with rivals Walmart and Amazon after more than a decade as the company aims to reposition itself amid slowing sales and competitive pressure. Under its new Price Match Guarantee policy, taking effect July 28, customers of the Minneapolis-based retail giant will be able to price match other Target products in the store or online within 14-days of a purchase, but the policy will no longer apply to its rivals. The company said the decision was driven by the fact that its 'guests overwhelmingly price match Target and not other retailers.' 'Target's Price Match Guarantee, paired with our commitment to being priced right daily, ensures guests get great prices when shopping Target,' the company said. Advertisement 5 Under its new Price Match Guarantee policy, taking effect July 28, customers of the Minneapolis-based retail giant will be able to price match other Target products in the store or online. AP 5 This policy applies to products in the store or online within 14-days of a purchase, but the policy will no longer apply to its rivals. Christopher Sadowski Target rolled out its very first price match policy, called the Low Price Promise, in 2009. Advertisement If a customer found a lower price at another brick-and-mortar store, the company matched it. Eventually, the company expanded this policy, matching prices from certain online retailers including and during the holiday season. 5 The company said the decision was driven by the fact that its 'guests overwhelmingly price match Target and not other retailers.' Christopher Sadowski 5 Target rolled out its very first price match policy, called the Low Price Promise, in 2009. Helayne Seidman Advertisement In 2013, the company began price matching top online retailers year-round, which then-CEO Gregg Steinhafel said that the move effectively made the company an 'unbeatable value' compared to its competitors in the highly competitive sector. The recent change, however, comes as CEO Brian Cornell works to turn around the company, which has been trying to drum up traffic and return to growth in back-to-back quarters. However, Cornell characterized the environment over the past few months in particular as 'highly challenging.' Target missed Wall Street expectations and cut its guidance for the year during its latest earnings call in May as it contends with tariff uncertainty, declining consumer confidence and backlash over its rollback of its diversity, equity and inclusion (DEI) efforts. 5 The recent change, however, comes as CEO Brian Cornell works to turn around the company, which has been trying to drum up traffic and return to growth in back-to-back quarters. REUTERS To try and get back to long-term profitable growth, the company developed a new multi-year growth initiative, called Enterprise Acceleration Office, and made changes to its executive suite. The Enterprise Acceleration Office initiative, led by Target Chief Operating Officer Michael Fiddelke, will specifically help the company operate more nimbly, 'creating conditions for speed, adaptability, innovation and resilience,' Cornell said. Target said in its latest earnings that it expects a low-single digit decline in sales for fiscal 2025, down from its previous forecast of net sales growth of about 1%.
Yahoo
16-07-2025
- Business
- Yahoo
Can TGT's AI Strategy Drive a Faster & Smarter Retail Transformation?
Target Corporation TGT is betting on artificial intelligence to help it move with greater speed and precision in an increasingly volatile retail environment. Through its newly announced Enterprise Acceleration Office, the company plans to embed AI more deeply across its business to eliminate inefficiencies, accelerate decision-making and strengthen execution. Management has made it clear that the intent is not just incremental improvement but a step-change in how quickly the company can adapt to evolving consumer trends and competitive is already seeing benefits of technology-led improvements in its operations. In the first quarter of fiscal 2025, the company improved delivery times by nearly 20% year over year, boosted same-day services by 36%, and achieved higher inventory availability, all while keeping costs disciplined. Much of this progress came from smarter, automated inventory allocation, fulfillment routing and shrink management — areas wherein AI and machine learning are starting to deliver real views AI as critical to unlocking agility at scale. By automating manual processes and surfacing better insights, the company can free up employees to focus on higher-value activities and respond faster to market changes. This is particularly important as consumer behavior becomes less predictable and competitors invest in similar also expects AI to improve the customer experience directly in the longer term through more personalized Target Circle offers, smarter pricing and promotions, and better digital assortment recommendations. While investments are ongoing, the company believes that AI will be a cornerstone of its transformation, helping it deliver relevance, speed and value in a fast-moving retail landscape. Walmart Inc. WMT is increasingly leveraging artificial intelligence to improve its supply chain, delivery speed and overall customer experience. The company has seen significant growth in sub-three-hour deliveries, which surged 91% year over year, driven by AI-powered automation and smarter routing at using AI-driven forecasting and inventory optimization, Walmart continues to adapt to demand shifts, enhance efficiency, and sustain a seamless and competitive omnichannel retail Buy Company Inc. BBY is embedding artificial intelligence into its digital platforms and customer service to boost engagement and efficiency. An AI-powered search with conversational prompts improves product discovery at Best Buy. The company also credits AI for record satisfaction and lower care costs, reinforcing Best Buy's technology leadership. The TGT stock has risen 15.9% over the past three months compared with the industry's growth of 2.7%. Image Source: Zacks Investment Research Target's forward 12-month price-to-earnings ratio of 13.41 reflects a lower valuation compared with the industry's average of 32.13X. TGT carries a Value Score of B. Image Source: Zacks Investment Research The Zacks Consensus Estimate for TGT's fiscal 2025 earnings implies a year-over-year decline of 14.8% and the same for fiscal 2026 indicates growth of 7.9%. Estimates for fiscal 2025 and 2026 have been upbound 4 cents and 8 cents, respectively, in the past 30 days. Image Source: Zacks Investment Research Target currently carries a Zacks Rank #4 (Sell).You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Target Corporation (TGT) : Free Stock Analysis Report Walmart Inc. (WMT) : Free Stock Analysis Report Best Buy Co., Inc. (BBY) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
22-05-2025
- Business
- Yahoo
Target's problems are escalating
Target was already facing a very public revolt from some of its most loyal customers. Now it's warning about tariffs. The company said Wednesday that sales fell last quarter, driven in part by customer backlash to Target's reversal on diversity, equity and inclusion (DEI) programs. Target also cut its guidance as President Donald Trump's tariffs push up costs for the company. Target's sales at stores open for at least a year tumbled 3.8% last quarter. Fewer customers visited Target and spent less when they shopped. Target also cut its financial outlook, a sign Target's problems won't go away quickly. The company expects sales to decline by low single-digits this year. The company announced that it established a multi-year 'Enterprise Acceleration Office' to speed up growth plans, and it reshuffled its executive team. 'We faced several additional headwinds this quarter, including five consecutive months of declining consumer confidence, uncertainty regarding the impact of potential tariffs, and the reaction to the updates we shared on (DEI) in January,' Target CEO Brian Cornell said on a call with analysts Wednesday. Cornell warned of 'massive potential costs' from tariffs, but said the retailer could offset them by diversifying suppliers, adjusting products – and hiking prices, if necessary. 'We have many levers to use in mitigating the impact of tariffs and price is the very last resort,' he said. Target's stock (TGT) dropped 7% during pre-market trading Wednesday. Target's stock has declined 37% over the past year. Cornell acknowledged in a recent email to staff that it has been 'a tough few months' between the retail economy 'headlines, social media and conversations that may have left you wondering,' the Minnesota Star Tribune reported. (Target confirmed the email to CNN.) Cornell said Target's culture and commitment to staff has not changed. 'I recognize that silence from us has created uncertainty, so I want to be very clear: We are still the Target you know and believe in,' Cornell said. Boycotts over Target's DEI reversal hurt Target's business. On January 24, days into Donald Trump's presidency, Target announced it was eliminating hiring goals for minority employees, ending an executive committee focused on racial justice and making other changes to its diversity initiatives. Target said it had a new strategy called 'Belonging at the Bullseye' and the company remained committed to 'creating a sense of belonging for our team, guests and communities.' Target also stressed the need for 'staying in step with the evolving external landscape.' But the decision angered supporters of diversity and inclusion policies, who felt blindsided by Target. Target had been a champion of diversity initiatives and LGBTQ rights. Customers online protested Target's decision and Anne and Lucy Dayton, the daughters of one of Target's co-founders, called the company's actions 'a betrayal.' Target faced a 40-day consumer boycott during Lent led by Rev. Jamal Bryant, a prominent Atlanta-area megachurch pastor, over its DEI rollback. Protestors picketed outside Target headquarters in Minneapolis and other Black leaders such as Rev. Al Sharpton supported boycott efforts. Target came under more pressure than other companies that rolled back DEI policies because Target had gone further in its DEI efforts, and it has a more progressive base of customers than those competitors. On CNN on Wednesday evening, Bryant said that though Target was the first business targeted, it wouldn't be the last. He said he is aware of more than 17 companies that have rolled back DEI initiatives. 'Another company is going to be coming on the radar the next couple of weeks,' he said. Target was a leading advocate for DEI programs in the business world in the years after George Floyd was murdered by police in the company's home city of Minneapolis in 2020. Target also spent years building a public reputation as a progressive employer on LGBTQ issues. Tariffs and a consumer slowdown put even more pressure on Target. The chain stocks more nonessential merchandise compared to competitors such as Walmart (WMT) and Costco (COST). More than half of Target's merchandise is discretionary and is at risk as consumers reign in spending. Around 50% of Target's products are also imported from overseas, including an estimated 25% from China, leaving Target in a 'challenging position,' Steven Shemesh, an analyst at RBC Capital Markets, said in a note Wednesday. Tariffs may force Target to either absorb added costs, hurting its profit, or raise prices on consumers. Home Depot said Tuesday that it plans to keep most of its prices stable, despite Trump's tariffs driving costs up. But tariffs may cause Home Depot to increase prices on select items and eliminate some product lines entirely. Walmart said last week that Trump's tariffs are 'too high' and it will raise prices on some items, prompting an angry response from Trump. 'Walmart should STOP trying to blame Tariffs as the reason for raising prices throughout the chain,' Trump said over the weekend. 'Between Walmart and China they should, as is said, 'EAT THE TARIFFS,' and not charge valued customers ANYTHING. I'll be watching, and so will your customers!!!' CNN's Ramishah Maruf contributed to this story. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
21-05-2025
- Business
- Yahoo
Target reports dismal earnings amid DEI ‘headwinds' and says two C-suite women leaders are on the way out
The retail giant Target continues to wander in troubled territory. In an earnings call today, CEO Brian Cornell told investors that the company has suffered declines in sales, partly because consumers are spending less on discretionary goods amid uncertainty over tariffs, but also because of 'headwinds' caused by a customer boycott of its January decision to roll back DEI initiatives. Target saw its total sales drop by nearly 3%, while comparable sales fell 3.8%. And like many other companies, the retailer lowered sales guidance for the year, citing tariff costs. 'I want to be clear that we're not satisfied with these results,' Cornell told reporters. Target's share price has dropped a whopping 37% over the past year and fell further on today's announcements. Against that backdrop, Target shared a significant leadership shuffle on Wednesday that includes the departure of two women from its C-suite team: Christina Hennington, chief strategy and growth officer, and Amy Tu, chief legal officer. The company also said it will create a new 'Enterprise Acceleration Office' to help drive efficiencies and growth. But analysts and industry watchers aren't convinced that the company's modifications will turn things around. Neil Saunders of GlobalData Retail wrote in a research note that the changes 'do nothing to restore confidence in the company. On the contrary, they are emblematic of a business that has made too many mistakes and has lost its way on several fronts.' DeAnn Campbell, an independent retail consultant in Atlanta, says she's concerned that Target has lost a major talent in Hennington, who worked at Target for 21 years and was widely seen as a possible successor to Brian Cornell. 'She really spearheaded their DEI program and has been pushing it quite a bit in the company, so to see her departure is not solving the problem,' Campbell told Fortune. Hennington has a 'brilliant mind' for partnerships, and was instrumental in building Target's groundbreaking partnership with Ulta Beauty and the sale of its pharmacies to CVS, she added. Losing that kind of strategist right now is a disappointment, she argues, as Target tries to reinvigorate its in-store sales experience. 'How are we going to get Target back to that big box, boutique feel?' she says. Target, Hennington, and Tu did not respond to Fortune's request for comment. Hennington first joined the retailer as a buyer for its Toys department in 2003, according to her LinkedIn profile, and eventually held C-suite roles in merchandising and growth before being named chief strategy and growth office only one year ago. Before arriving at Target, Amy Tu spent six years at Tyson Foods, and a similar amount of time at Boeing. Five years ago, following the death of George Floyd in the retailer's hometown, Target took pains to increase its commitments to DEI and to the Black community. Then, in January, shortly after President Donald Trump took office and signed a number of anti-DEI executive orders, Target scaled back its diversity efforts, including those around suppliers. The response to Target's back-pedalling was swift. Activists in Minneapolis and Georgia called for boycotts, while the daughters of a Target cofounder voiced concerns that the company was abandoning its original culture. However, Campbell and other retail watchers say that while the DEI boycott and Target's poor handling of it has contributed to the store's battered reputation, the company had been suffering from a lack of investment in its stores and products for much longer, and that Target's tired stores have had a bigger impact on its declining financials. Gone are the days when shoppers were delighted by designer kettles or when First Ladies proudly wore Target gowns, says Campbell. And while Target has run into an enduring decline, competitors like Walmart are making inroads with both its products and in-store experience. On social media, Saunders also suggested that some of the company's bottom line growth—net income increased by 10%, a bright spot in today's earnings—reflects a lack of investment in Target stores and staffing, which he called 'a case of short-term gain at the expense of longer-term pain.' This story was originally featured on Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
21-05-2025
- Business
- Yahoo
Target Cuts Full-Year Sales Forecast After Mixed Q1 Results
Target (TGT) lowered its full-year sales projection Wednesday after the retail giant reported mixed first-quarter results. The Minneapolis-based retailer reported adjusted earnings per share (EPS) of $1.30 on revenue that decreased nearly 3% year-over-year to $23.85 billion. Analysts had expected $1.64 and $24.34 billion, respectively, per Visible Alpha. However, Target's GAAP EPS of $2.27, which includes the gains from litigation settlements, topped the $1.64 estimate. Comparable sales declined by 3.8%, as a larger drop in in-store shopping offset an increase in digital sales. Analysts had projected a 1.68% drop. "While our sales fell short of our expectations, we saw several bright spots in the quarter, including healthy digital growth," CEO Brian Cornell said, adding that the retailer is "not satisfied with current performance and know we have opportunities to deliver faster progress on our roadmap for growth." The company cut its fiscal 2025 sales forecast and widened its projected profit range. The retailer now expects a low-single-digit sales decrease and EPS of $8.00 to $10.00, with adjusted EPS—excluding the Q1 gains from litigation settlements—projected from $7.00 to $9.00. Last quarter, Target said it expected roughly 1% net sales growth and earnings per share, both GAAP and adjusted, of $8.80 to $9.80. Separately Wednesday, Target announced the creation of a "Enterprise Acceleration Office," led by COO Michael Fiddelke. The retailer said the effort is designed to "improve how functions work together to advance key priorities, ranging from simplifying cross-company processes to using technology and data in new ways to power the team." Shares slipped 1.5% shortly following the release. They entered the day down about 28% since the start of the year. Read the original article on Investopedia Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
