Target Sales Slide: Hold Rating Amid Strategy Concerns


  • Target is facing declining sales due to inflation, high interest rates, and a shift in consumer spending toward services.
  • The company is focusing on everyday essentials to win back customers, but still expects sales to remain flat to slightly up in the current quarter.
  • Initiating coverage with a hold based on Target’s lack of a strategic growth plan to revive sales and slowdown in consumer spending.
  • My analysis specializes in identifying companies that are experiencing growth at a reasonable price.

New York during the COVID-19 emergency.

Massimo Giachetti

Investment Thesis

As I have written before in my Lululemon Athletica Inc. (LULU) article, consumer discretionary stocks are being negatively impacted by slower consumer spending. According to Target Corporation’s (NYSE:TGT) last earnings report



Kohl’s Corporation (KSS)

The TJX Companies, Inc. (TJX), Inc.(AMZN)

Corporate Strategy

Balance value & experience, strong private label brands, omnichannel focus

Everyday low prices, vast selection, focus on efficiency

Value oriented department store, focus on national brands & private labels

Treasure hunt shopping experience, brand-name discounts

Online retail giant, vast selection, convenience, fast delivery

Revenue Growth direction


Steady growth


Steady growth

Steady growth







Other important factors

Strong digital presence, focus on a loyalty program

Strong supply chain, emphasis on low prices

Strong private label brands, focus on promotions

Focus on curation and treasure hunt experience

Diversified revenue stream. Wide variety of fulfillment options.

Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Rating systems don't consider time horizons or investment strategies. My articles aim to inform, not to make decisions.

Seeking Alpha’s Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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