It's raining offers at
Target Corporation
(
TGT
), the operator of general merchandise and food discount stores in
the United States, as the company announced the expansion of its
'Black Friday' sales into nine days of deals.
Target will hold its "Bonus Black Friday" sale for two days,
July 20 to July 21, followed by its first-ever Summer Cyber Week
sale from July 22 to July 28.
The move reflects the company's strategy to combat the slowdown
in consumer spending by offering extended deals on a wide range of
products including apparel, electronics, toys, baby gear, movies,
health & beauty and more.
We believe that Target's efficient marketing, multi-channel
strategy, product innovation, compelling pricing strategy and new
merchandise assortments, should help to drive comparable-store
sales and operating margins in the long term. We expect the company
to gain market share, and believe that more focus on consumable
items should boost sales and earnings in a sluggish consumer
environment.
In order to lure customers, Target is also providing an
additional benefit of free shipping for any e-shopping to its
cardholders, who are already getting a discount of 5% for their
purchases.
Target now tends to focus more on store renovations, enhancing
store sales productivity while introducing smaller store formats,
and eyeing opportunities to open stores in international
markets.
Target, which competes with
Wal-Mart Stores Inc.
(
WMT
) and
Costco Wholesale Corporation
(
COST
) holds a Zacks #3 Rank (short-term Hold rating).
We have a long-term Neutral rating on the stock as the company's
customers remain sensitive to macroeconomic factors including
interest rate hikes, increase in fuel and energy costs, credit
availability, unemployment levels, and high household debt levels,
which may negatively impact their discretionary spending, and in
turn, the company's growth and profitability.
COSTCO WHOLE CP (COST): Free Stock Analysis
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