WMT Sep 2024 195.000 call
- Yahoo Finance Video
The big blunder Target made but Walmart avoided
Target's first quarter earnings fell short of analyst estimates as inflation continues to take a bite out of consumers' wallets. Longtime retail executive and Storch Advisors CEO Jerry Storch says there was one mistake Target (TGT) made years ago that gave Walmart (WMT) an edge. "Target years ago... made a strategic blunder to basically pull out of the full-service grocery business. What you have in Target right now is really a large convenience grocery store, whereas Walmart is the nation's largest real grocery store with all the departments and fresh produce... That positions Target very poorly. They can't fix that overnight," Storch says. He goes on to explain that Walmart customers are going to get groceries every week, for example, but then purchasing higher-margin general merchandise because they are there. For Target, it's "backwards" Storch argues, saying that customers may be going once a month for general items and buying low-margin groceries since they happen to be there. For more expert insight and the latest market action, click here to watch this full episode of Catalysts. Watch the full interview with Jerry Storch here. This post was written by Stephanie Mikulich.
- Yahoo Finance Video
What Target vs. Walmart earnings tell us about the consumer
Target (TGT) recently posted its first-quarter earnings, missing out on Wall Street estimates, revealing a loss of 3% in comparable sales year-over-year and a drop in US traffic by 1.9% year-over-year. Meanwhile, in Walmart's (WMT) recent quarterly report revealed an increase in comparable sales and US traffic by 3.8% year-over-year. Yahoo Finance Retail Reporter Brooke DiPalma joins Wealth! to compare the earnings figures between these two retail giants and what they signal about the consumer. For more expert insight and the latest market action, click here to watch this full episode of Wealth! This post was written by Nicholas Jacobino
- Yahoo Finance
Target earnings miss the mark as inflation-battered shoppers avoid buying things they don't really need
Target comes up short after having shown signs of improvement in its business to cap off 2023.
