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New York Post
6 days ago
- Business
- New York Post
NYC fast-casual lunch spots offer refuge from the 'sad salad'
These take the 'mid' out of Midtown. With NYC workers flocking back to the office in record numbers, working stiffs are seeking quick and tasty lunch options without paying through the nose. More often than not, they end up with the ubiquitous 'sad' salad, an expensive amalgam of cold rabbit foods crunched catatonically at one's desk while one scrolls social media. Hawked at such hotspots like Sweetgreen and Chopt, these soulless roughage bowls have inundated Midtown, offering little sustenance for the ever-growing throngs of desk jockeys in NYC, where post-pandemic visits to office buildings in April were just 5.5% below 2019 levels — a national record, according to the platform. 12 A mixed bowl with purple rice, soy eggs, kimchi, steak and more at SOPO, the hot new fast-casual Korean concept in Midtown. Stefano Giovannini '[It's] hard to find food that actually tastes good [and] that's not just rushed,' Sade Quianes, who works for a streaming company in the city, told The Post. The '$20 salad' was notably lampooned on TikTok by singer 'Awkward' Marina Sneider, who crooned in her viral ditty, 'it isn't even good and you're not even wealthy, but you need all your coworkers to think you're super healthy.' Thankfully, there is a growing fraternity of Midtown fast-casual restaurants that provide convenience without sacrificing flavor — and they're increasingly eating 'sad' salads for lunch. As a service to hangry workers, here are five of the best, because Gotham deserves a better class of midday meal. Seoul food at SOPO SOPO achieves the difficult task of condensing Korean staples like beef bulgogi and crispy scallion dumplings into one convenient takeout dish. Opened with the intent of bringing 'Michelin-quality Korean food to Midtown,' SOPO (whose name means 'Parcel' in Korean) is helmed by co-founder Tae Kim and Chef Dennis Hong, an alum of Michelin-starred Le Bernadin. 'We wanted to do a well-executed version that's very delicious, but it's also hassle-free,' Kim told The Post. He was inspired in part by his years working at a Tribeca bank where he'd have to scrounge up edible eats off Seamless on a $25 stipend. 12 'You can come here and get authentic Korean food and still very affordable,' gushed SOPO customer Sade Quianes. Stefano Giovannini 12 'I want a variation in the texture and flavor of the different things rather than having a lot of the same,' said SOPO co-founder Tae Kim while describing how he planned to distinguish himself from the typical fast-casual spot. Stefano Giovannini To order, customers select their bases ranging from salad to Korean purple rice (a mix of black and white rice), proteins such as steak or chicken, garnishes like crispy seaweed and sides including kimchi and soy-dipped eggs. These can be topped with a palette of sauces ranging from a Korean chili paste to one with perilla leaves, tarragon and coconut yogurt. Total price for a Seoul Steak Signature Plate: $16.48 'You can come here and get authentic Korean food and still very affordable,' gushed Quianes while toting a dish of dumplings and rice, which is cooked on-site in olive oil and giant sheets of Korean kelp for maximum umami. 12 SOPO co-founder Tae Kim said the goal was to allow customers to build their own bowls but ensure that every possible 'permutation' makes sense culinarily. Stefano Giovannini One difference is that SOPO doesn't 'mix' anything together to avoid discordant flavor combos. 'It's intended that everything is had separately as its own gourmet dish, because I feel like that's the only way that every permutation really works,' said Kim. Those who want their lunch in wrap form can opt for the kimbap, Korean 'sushi rolls' featuring chicken, beef, tofu and more fillings ($13.49) that are hand-rolled in front of customers and swaddled in foil to go — essentially SOPO's answer to Chipotle. SOPO, 463 7th Ave. between 35th and 36th Streets The Toast Of Mid-town 12 A sprawling Spicy Crab toast at Toastique. Stefano Giovannini 12 Toastique at 445 5th Ave near Bryant Park. Stefano Giovannini Healthful toast and juice bars have become almost cliche in NYC, but this newly-opened Washington D.C.-based transplant elevates the well-trodden concept with responsibly-sourced and unqiue accouterments. Some of the Gourmet Toasts, which are served atop bloodcurdlingly-crunchy bread as big as a battle cruiser, include Spicy Crab ($17) with lump crab, melted Swiss and Fontina cheese, tomatoes and more — like a jumbo crostini. Other toppings include avocado mash — the millennial catnip — prosciutto and even peanut butter and berry jam that's made in-house sans preservatives. Those looking for something lighter can opt for their fruit and granola bowls and wash it down with their all-natural smoothies or cold-pressed juices. Toastique, 445 5th Ave. near East 39th Street Dim sum and substance 12 Roast pork and duck over rice at Dim Sum Sam. Stefano Giovannini With its tiny breakfast baskets of chicken feet and lotus-wrapped sticky rice, dim sum might not seem like office-friendly fare. Thankfully, Dim Sum Sam makes the traditional Cantonese sit-down brunch to go and at any time of day — like China's version of Denny's all-day breakfast but high quality. They boast four locations across town in Fidi, Chinatown, the Flatiron district and a newly-opened branch in Times Square. Unlike many fast-casual options, Dim Sum Sam also notably hand-crafts each piece of dim sum fresh by hand. 12 Dim Sum Sam customers Miranda (left) and Andrea posing with a roast pork and duck rice bowl. Stefano Giovannini Along with bamboo basket standbys like chicken feet, shrimp dumplings and Portuguese egg tarts, the dim sum depot also hawks portable bowls. These include BBQ roast pork over rice ($11.95), shrimp and pork wonton soup ($8.95) and even a speedball of roast duck and pork over rice ($13.95). 'If you can't find your Chinese aunt or mom in the morning, I know where they are,' quipped frugal foodie @ in a video review of Dim Sum Sam. Dim Sum Sam, 240 W 40th Street between 7th and 8th Avenues Midtown Eastern 12 A Chicken Shawarma bowl at NAYA, which condenses vibrant and diverse Lebanese cuisine into convenient to-go bowls. Stefano Giovannini This Lebanese juggernaut offers the same choose-your-own-adventure format as its 'sad' salad counterparts, but with vibrant toppings like beef shawarma and lamb kebab over vermicelli rice that's adorned with yogurt, hummus and paired with pita (for around $13.99) — they're not selling glorified airplane food here. Founder Hady Kfoury told The Post that NAYA distinguishes itself via quality components like tahini and pickles sourced from Lebanon and hummus that's soaked for 24 hours, boiled all day, blast chilled and whacked with tahini and lemon. 12 The line at NAYA near Bryant Park. Stefano Giovannini He also said that the chain makes food that's hard for the average cook to recreate. 'During the pandemic, everybody baked bread at home, everybody created salads,' Kfoury said. 'You're not able to replicate NAYA at home because of the ingredients.' Kfoury said he hopes to have 45 branches by the end of this year with the latest one opening near Rockefeller Center on June 11 if all goes well. NAYA, 9 W 42nd Street near Fifth Avenue Treasure of the Sierra Madras 12 A dosa without filling at Madras Dosa, a South Indian chain that originated in Boston. Stefano Giovannini 12 Customers Raj Srinivas Krishna Srinivas at Madras Dosa. Stefano Giovannini Also ideal for casual fry-day is this Boston transplant, which recently opened a new branch in Times Square and specializes in dosas, a parchment-thin South Indian savory rice and lentil crepe. They have around 30 customizable options, ranging from savory options like spicy potatoes ($16.33), Lays' Indian-flavored chips and lamb to unorthodox sweet versions such as strawberry jam and Nutella. Other notable lunchable fare includes chaats, fried dough topped with various herbs and chutneys, best washed down with a tangy, creamy mango lassi. Madras Dosa, 30 Rockefeller Center, Concourse Level
Miami Herald
29-05-2025
- Business
- Miami Herald
Trader Joe's debuts beloved product in stores at a shocking price
Over the past few years, Trader Joe's appears to have grown in popularity among consumers, as a few of its products and deals have consistently gone viral on social media. Last year in March, its $2.99 limited-edition mini tote bags became the latest it bag, thanks to TikTok, which caused a stir in stores. The bags became so popular that they quickly sold out nationwide, and when they were restocked, employees often had to limit how many bags each customer could purchase. Don't miss the move: Subscribe to TheStreet's free daily newsletter It's not just tote bags that customers are crazy about; a few Trader Joe's food items have also gone viral on social media, such as its caramelized onion dip, Speculoos cookie butter, chocolate peanut butter cups, etc. Related: Walmart CEO has a harsh warning for customers Amid increased popularity on social media, Trader Joe's has seen a healthy spike in foot traffic over the past year. According to recent data from the number of consumers that visited Trader Joe's stores in 2024 increased by 6.2% year-over-year. Image source:As Trader Joe's continues to win the hearts and wallets of many consumers, it is hopping on a viral trend to help maintain this momentum. The grocery giant is adding its own version of the TikTok viral Dubai chocolate to its shelves, starting this week. Dubai chocolate is essentially a milk chocolate bar filled with kataifi (a shredded filo pastry) that is mixed with pistachio cream and tahini. The chocolate bar first went viral on social media in late 2023, when social media influencer Maria Vehera posted a video of herself on TikTok eating the dessert, which was made by Dubai-based Fix Dessert Chocolatier. Trader Joe's version of the dessert is made with dark chocolate instead of milk chocolate. An employee first leaked news of the upcoming product on Reddit, which sent fans into a frenzy. Related: Target CEO sounds alarm on customer behavior The grocery chain later confirmed the news, stating that the product is called Patislove Dubai Style Pistachio Dark Chocolate. It will sell nationwide for $3.99 (a shockingly low price compared to other retailers) and be available for a limited time. "FINALLY! A dark version. The dubai milk chocolate everywhere is wayy too sweet for me. I hope this is a good one!!" wrote one Reddit user. "I don't think I've ever been more excited for a TJs item! " wrote another Redditor. The move from Trader Joe's comes at a time when it faces heightened competition from one of its main rivals, Aldi. Data from shows that while Trader Joe's visits increased by 6.2% year-over-year in 2024, Aldi's increased by a whopping 18.2%. Also, fewer shoppers visited other grocery stores before or after stopping at Trader Joe's or Aldi in 2024 compared to 2023, which suggests that consumers are increasingly considering both stores as primary grocery destinations. also found that Trader Joe's usually attracts higher-income shoppers who make an average of $110.1K a year, while the average salary of Aldi's shoppers is around $75.7K. More Retail: Costco quietly plans to offer a convenient service for customersT-Mobile pulls the plug on generous offer, angering customersKellogg sounds alarm on unexpected shift in customer behavior Trader Joe's also plans to open dozens of new stores in 2025, while Aldi plans to open 800 U.S. locations by the end of 2028. Trader Joe's and Aldi are experiencing increased momentum from shoppers as inflation and higher costs of living are forcing many consumers to tighten their spending. Tariffs (taxes companies pay to import goods from overseas) are also threatening to increase prices, making consumers reconsider their shopping habits. According to a recent survey from market research company Numerator, 72% of Americans are worried that tariffs will increase prices for everyday goods. Also, 83% of Americans are changing their shopping habits to prepare for the impact of tariffs. Some of these changes include searching for sales and coupons, delaying purchases, buying fewer imported goods, and more. Related: Veteran fund manager unveils eye-popping S&P 500 forecast The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc.
Yahoo
28-05-2025
- Business
- Yahoo
How restaurant chains are updating their marketing menus in tough economy
This story was originally published on Marketing Dive. To receive daily news and insights, subscribe to our free daily Marketing Dive newsletter. Major restaurant brands frequently face stiff competition and low margins, a business reality that is even tougher to navigate during periods of consumer uncertainty. These concerns have been prevalent so far in 2025, as the Trump administration's fluctuating tariff plans have kept the economy on edge. Amidst the turmoil, a number of these businesses are leaning on their marketing organizations to buoy sales, including with big-swing creative campaigns, evolving loyalty strategies and investing in digital technology. 'With the rise in uncertainty and the possibility of rising prices because of tariffs, a lot of the chains are shifting the marketing strategy to be focused more on nostalgia or innovation, and moving away from price point,' said R.J. Hottovy, head of analytical research at location analytics platform While earnings reports for most quick-service and fast-casual restaurants have shown few bright spots, a recent analysis by Marketing Dive reveals several trends around how marketers are doing their part to maintain positive relationships with consumers. QSR leader McDonald's has been a red-and-yellow canary in the coal mine for the restaurant industry's struggles, with U.S. same-store sales dropping 3.6% in Q1 2025, a stark contrast from the 12.6% increase notched in Q1 2023 and 2.5% in Q1 2024. 'We entered 2025 knowing that it would be a challenging time for the QSR industry due to macroeconomic uncertainty and pressures weighing on the consumer,' CEO Chris Kempczinski said on McDonald's most recent earnings call. 'We're not immune to the volatility in the industry or the pressures that our consumers are facing.' McDonald's continues to try to put its brand at the center of culture and replicate the success of its Famous Orders platform and activations like the viral Grimace birthday campaign of 2023. The chain this year tapped John Cena to promote its value menu and unveiled a Pokémon Happy Meal, but its biggest win could end up being a partnership with 'A Minecraft Movie.' Launched in March, the campaign around the record-breaking video game adaptation was the chain's largest global campaign yet and rolled out in more than 100 markets. 'We're encouraged by the consumer response to the 'Minecraft' movie campaign and by our overall performance in April, which illustrates the benefit of our value platforms working in conjunction with full-margin promotions and outstanding marketing execution,' Kempczinski said on the Q1 earnings call. McDonald's national linear TV ad spend was estimated to be $39.6 million in Q1, up nearly 75% year over year, with an emphasis on savings-focused ads and its partnership with WNBA star Angel Reese, per iSpot data shared with Marketing Dive. The chain saw a 19.5% lift in web traffic driven by linear TV advertising, surpassing other burger brands in a recent study by TV outcomes measurement company EDO. The findings suggest that McDonald's could see further gains by optimizing its TV ad spend, shifting away from underperforming dayparts like primetime towards the early morning. 'QSR brands are seeing strong consumer response to value meal deal ads during this period of budget tightening, where every dollar — both for consumers and advertisers — must work harder,' said Laura Grover, senior vice president and head of client solutions at EDO, in a statement. 'As marketers navigate this uncertain landscape, impression quality becomes the key to driving smarter allocation decisions and ensuring stronger returns within a brand's existing media footprint.' While McDonald's works to hitch its brand to pop culture, Starbucks is trying to reassert its brand identity as part of a turnaround plan that includes significant marketing investments. The cafe chain in Q1 saw U.S. comparable store sales decline 2%, with a 4% decline in comparable transactions partially offset by a 3% increase in average order cost. Launched around the Super Bowl, 'Hello Again' and 'Starbucks Monday' generated record-breaking customer engagement and drove the chain's second-highest Monday gross sales day ever, CEO Brian Niccol said on the company's most recent earnings call. The percentage of customers ranking Starbucks as their first choice is the highest it's been in two years, and TikTok engagement has increased by nearly three times quarter-over-quarter, the executive said. 'We saw stabilization in our non-Starbucks Rewards member traffic, indicating our broad-based marketing campaign to reintroduce Starbucks to the world is resonating with our customers,' Niccol said. 'I think we're going to continue to just get better from here as it relates to the marketing side of the business.' Like Starbucks, Papa Johns is also undertaking a transformation strategy that includes amplifying marketing messages as a key priority. To that end, the pizza chain in March launched 'Meet the Makers,' the first creative work under CMO Jenna Bromberg, who joined in November. The campaign delivered early positive results, helping to increase customer awareness and consideration among QSRs, according to CEO Todd Penegor. Papa Johns' North America comparable sales were down 3% year over year in Q1. Informed by consumer insights, the chain plans to evolve the campaign to focus on its use of simple, fresh ingredients. Papa Johns has also relied on incremental media investments to both reinforce the brand and improve transactions. 'As we amplify our marketing message, we are investing to win share of voice at both the national and regional levels, drive transactions, support continued testing of value propositions, and increase our agility,' Penegor said on the earnings call. Across the restaurant landscape, marketers are working to fine-tune and evolve their loyalty platforms and rewards programs to better meet the needs of cost-conscious consumers. McDonald's continues to see strong systemwide sales from loyalty members, notching $31 billion for the trailing 12-month period as it looks to secure $45 billion a year by 2027 in this area. While the loyalty sales are encouraging, McDonald is looking to strike a balance between its everyday value menu and limited-time digital offers. 'Until you get to a point where the usage of the app is the majority of your traffic, relying on that as the primary source of value, it just doesn't work because you're not reaching the majority of your consumers,' Kempczinski said on the earnings call. 'For that reason, having a broad platform like we have, McValue, that's available to everybody… it's an imperative that you have that, which is why we've spent the time and energy getting that launched properly.' Cava — one of the big winners of fast casual chains in Q1 with 10.8% year-over-year growth — has also made its loyalty program a focus. The purveyor of Mediterranean fare saw sales through the program increase 340 basis points as a percentage of total revenue since an October relaunch. Total membership in the program is approaching 8 million members, with more than 50,000 new registrations per week. The results speak to the chain's new strategy around loyalty. 'The original goal was moving from a more transaction-based 'spend X, get Y' to a 'earn and bank points' model that would drive greater engagement and participation in the program, and that's what we're seeing,' CEO Brett Schulman said on an earnings call. 'So, you looked at our lower frequency or mid-tier frequency users, and we lowered the entry reward hurdle, and that has gotten those users more engaged.' For Cava, bringing guests into its first-party ecosystem increases opportunities for personalization and fosters a test-and-learn environment for engagement. The chain plans to roll out the second phase of its loyalty program, introducing a tiered structure that adds increased benefits and rewards based on visit frequency, per the earnings call. "The level of insights we have with our guests today plays a big role in informing the executional elements of a loyalty program." Michael Skipworth CEO, Wingstop Like competitor and loyalty innovator Domino's before it, Papa Johns in November lowered the redemption threshold of Papa Rewards, a change that helped draw about 1 million more loyalty members into the loyalty program in Q1, for a total of more than 37 million. While the change also caused a slight overall decrease in the size of orders, it drove growth among medium- and high-frequency loyalty consumers and caused faster repeat purchases. As brands with mature loyalty programs tweak their offerings, new entrants continue to emerge. Wingstop will pilot a loyalty program in Q4, with plans for a system-wide launch in 2026. The loyalty program will draw on insights and membership from the 50 million-strong database of its MyWingstop digital ordering platform and offer Gen Z and millennial consumers experiential engagement opportunities. 'We believe our loyalty program will be distinctive in the industry because we're not taking the typical transactional approach within our design. The level of insights we have with our guests today plays a big role in informing the executional elements of a loyalty program,' CEO Michael Skipworth said on an earnings call. Along with the behind-the-scenes work of building loyalty programs and integrating customer relationship management data, restaurant chains are investing in technology to boost their mobile and digital ecosystems. In the app space, Starbucks will update its offering to allow scheduling of mobile order pickup and improved price transparency. Chipotle continues to work to reduce friction in its app and Wendy's in Q1 added gamification to encourage customers to engage with the brand beyond purchases. Artificial intelligence (AI) remains the buzziest tech in marketing, in restaurants and beyond. Papa Johns last month partnered with Google Cloud to leverage AI to enhance personalization and its ordering and delivery experience. 'It's largely been generative AI, to this point, to help out firms fine-tune their message to consumers, but we're starting to see other things behind the scenes — other AI platforms — to get better insights for their customers and use that for one-to-one engagement,' said Hottovy. "These advancements are driving smarter targeting, increased efficiency and stronger returns on our digital marketing investments." Chris Turner CFO, Yum Brands Yum Brands, the parent company of Taco Bell, KFC and Pizza Hut, has teamed with Nvidia to accelerate its deployment of AI. The company in February revealed a suite of proprietary software-as-a-service tools called Byte by Yum that integrates a variety of tech offerings for thousands of restaurants. The suite's solutions are already yielding results, helping Taco Bell push the bounds of its ad creative and use personalization to generate additional sales. Digital sales across the entire Yum portfolio increased 12% YoY in Q1, growth executives credited to the company's investment in tech. Overall, Yum's worldwide system sales grew 5%, driven in part by Taco Bell U.S. system sales growth of 11%. 'Our U.S. brands are harnessing our powerful data engine and first-of-its-kind cross-brand consumer data platform to deliver personalized marketing campaigns,' Yum CFO Chris Turner said on an earnings call. 'Since the end of last year, we've expanded AI-driven marketing use cases across our brands, further embedding intelligence into how we engage and convert consumers. These advancements are driving smarter targeting, increased efficiency and stronger returns on our digital marketing investments.' 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
Business Insider
24-05-2025
- Business
- Business Insider
TJX CEO wants you to find something on the rack that 'almost feels too cheap'
It's an experience that almost anyone shopping at TJ Maxx, Marshalls, Sierra, or Home Goods eventually has: you're browsing items, see a price tag, and think, "that can't be right." Before you know it, you're a full-blown Maxxinista. As it happens, TJX CEO Ernie Herrman said the company wants you to feel a little suspicious when you encounter a sharp deal. "We want a customer to actually say, 'That almost feels too cheap,'" he said in a quarterly earnings call Wednesday. "One out of every 10 hangers I want a customer saying, 'Boy, that that almost feels too inexpensive,' strangely enough." The playbook has been working for the company, which reported strong sales and traffic gains at its family of brands despite a broader slowdown in apparel and housewares categories in recent years. Apart from a bad-weather month in February, monthly visits to TJ Maxx and Marshalls were up roughly 6% to 8% in January, March, and April of this year versus last year, according to foot traffic data from Visits to traditional apparel stores have been basically flat or down for the period. also found that not only do shoppers visit more often, they spend more time in the stores as they hunt for those surprising deals. "A significant part of this success may stem from the segment's inherent 'treasure-hunt' experience — off-price shopping cultivates a browsing mentality, encouraging visitors to linger and explore the constantly changing inventory," Bracha Arnold wrote. This year so far, found TJ Maxx shoppers spent an average of 40.3 minutes in the store, while shoppers at traditional apparel chains averaged 33.3 minutes — a difference of about 20% more time spent trying to find that suspiciously good deal. Of course, there's a lot more to the equation than simply offering low prices. "Value isn't just a function of competitive prices," Global Data retail analyst Neil Saunders said in a note. "It also comes from buying well and meeting customer needs. In our view, TJX merchants are excellent at doing at that and they are one of the key assets that will propel the company forward." On the earnings call, Herrman said TJX has a team of over 1,300 buyers who have relationships with more than 21,000 vendors across more than 100 countries around the world. And while the company is not immune from tariff impacts (Herrman said TJX directly imports about 10% of its goods), much of its sourcing is downstream from other brands and retailers that will likely bear a fair amount of the costs, rather than TJX itself. Global trade chaos now represents a key opportunity for TJX to load up on interesting merchandise, since unexpected inventory surpluses are where off-price retail shines. Jefferies retail analyst Corey Tarlowe found that retail inventories are on the rise for the first time in two years, reversing a trend of leaner, more disciplined inventory strategies in the post-COVID era. "Given these trends, the availability for TJX should remain robust. TJX management noted inventory availability in the marketplace is better than usual," Tarlowe wrote. On the earnings call, Herrman said his buyers aren't tasked with a complex set of price sheets or profit margin targets. Their primary task is finding exciting products they can offer at a compelling discount to the full-price store around the corner. "Our only contract to the customer is that we will have great value on the goods that we put out there, and it'll be below the out-the-door price of traditional retailers," he said.
Yahoo
23-05-2025
- Business
- Yahoo
Target CEO sounds alarm on customer behavior
Target () continues to feel the impact of several consumer frustrations, which recently contributed to weaker sales. Amid this startling trend, the retailer has conjured up a plan to win back customers. In Target's first-quarter earnings report for 2025, it revealed that while its comparable digital sales increased by 4.7% year-over-year, its comparable store sales decreased by 3.8%. 💵💰Don't miss the move: Subscribe to TheStreet's free daily newsletter 💰💵 Specifically, the number of transactions in stores dipped by 2.4%, while the average amount of money customers spent per transaction declined by roughly 1.4%.The decrease in sales comes during a time when Target faces backlash and boycotts from consumers over its decision in January to scale back its diversity, equity, and inclusion policies. This includes withdrawing its participation in the Human Rights Campaign survey, which tracks LGBTQ+ corporate policies and practices. Target also discontinued its three-year DEI goals and concluded its Racial Equity Action and Change initiatives, which involved advancing the careers of Black employees, implementing anti-racism training for team members, promoting Black-owned businesses, sourcing products from Black suppliers, and more. After this decision was announced, Target's foot traffic in stores started to suffer. According to a recent report from Target's visits during the first few months of 2025 fell by 4.1% year-over-year, and visits per location were down by 4.8%. During an earnings call on May 21, Target CEO Brian Cornell said that the company is 'not satisfied' with its recent performance and emphasized that it is operating in an 'exceptionally challenging environment' that has impacted foot traffic and sales. He said several challenges had a negative impact on business, including inflation, tariffs, and Target's recent decision to cut back DEI. 'For several years now, we've seen pressure in our discretionary businesses, as spending adjusted down from elevated levels during the pandemic and then moved further away in the face of historically high inflation in needs-based categories,' said Cornell. 'On top of those ongoing challenges, 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 Belonging in January.'In order to combat these pressures, Cornell said Target will open a new Enterprise Acceleration Office to simplify how it operates. The company will also make several organizational changes to 'bring even more clarity and speed' to how it conducts business and advances its strategy. In addition, Target will work hard to prevent potential price increases in its stores that may stem from tariffs, which are taxes companies pay to import goods from overseas. Recently, President Donald Trump imposed a 10% baseline tariff on all countries and paused reciprocal tariffs. When the pause on reciprocal tariffs ends in July, roughly 60 countries will soon see higher tariff rates. This move has caused increased anxiety among consumers who are worried about paying higher prices for goods. More Retail: Costco quietly plans to offer a convenient service for customers T-Mobile pulls the plug on generous offer, angering customers Kellogg sounds alarm on unexpected shift in customer behavior During the call, Cornell said that Target has been working 'tirelessly' to mitigate the impact of tariffs, and the difficulty level is 'incredibly high' due to the magnitude of Trump's tariff rates. 'As a company that aims to deliver great products and outstanding value, we're focused on supporting American families as they manage their budgets,' said Cornell. 'We have many levers to use in mitigating the impact of tariffs, and price is the very last resort.' Some of the efforts Target is taking to minimize the threat of tariffs include negotiating with vendor partners, reevaluating assortment decisions, changing country of production, tweaking order timing, and even adjusting prices where CEO sounds alarm on customer behavior first appeared on TheStreet on May 23, 2025
