It turns out the Target Express potentially coming to Ocean Beach is not just some chance encounter between the corporate giant and a small, seaside community.
Corporate Target has been having a difficult time lately and has been putting into play its plans to turn its business around. It was just in February at the end of that quarter Target reported its profits plummeted 43% as sales at its stores sagged due to “the mass migration by its customers online and elsewhere.”
It’s been really tough for malls and traditional retailers as they compete against Amazon and other online retailers as shoppers hit the keyboards instead of the aisles.
Yet, Target profits just jumped 8% this very last first quarter of 2017 as corporate management employed tactics to struggle against the online monsters. Efforts to turn the ship around may be paying off, but the mega-company still needs to figure out how to survive and more, thrive, in this retail world dominated by Amazon and Wal-Mart.
So, here’s the plan. Target expects to spend $7 billion over the next 3 years – on the expansion of its small-format stores – like the Target Express expected to open on Newport Avenue in OB, as well as remodeling a third of its 1800 stores, to expand and develop its online presence and also to launch new brands. This expenditure is three times what Target spends typically.
And the Ocean Beach store would be one of the devices the corporate giant is employing to fight Amazon – open up in cute, little neighborhoods, use the smaller format to appeal to local patrons, and probably use the backroom storage area to house goods bought online.
As more Target Expresses open up, the company expects profits to expand again in 2019.
More on Target’s latest earning:
Earnings, adjusted for pretax gains and to account for discontinued operations, came to $1.21 per share, well above the 91 cents per share according to FactSet. Revenue fell 1.1 percent to $16.02 billion, above the $16.22 billion estimate, according to FactSet.
Comparable store sales fell 1.3 percent, the fourth consecutive month of declines, but with the company retrenching, it was much better than the 3.7 percent decline that industry analysts had expected. Shares jumped $4.53 to $59.06, but they’re still down more than 24 percent for the year.
{ 4 comments… read them below or add one }
Ugh, why am I not surprised? What’s next, a “Wal-mart Neighborhood Market”? Seems these are popping up all over the county.
Yes, if that’s what it takes to remain competitive in today’s market. I would fully expect it if these express stores of Targets start to creep into the walmart market and turn a profit. I am pretty sure Walmart won’t sit back and let it happen after all Walmart started out in small towns that were not well served
You know, I might have taken a Walmart Neighborhood Market where CVS is but not on Newport. Bad fit just like Target…Not on Newport not in OB.
Amazon.com is probably killing local businesses more than anyone else…also causing an increase in traffic on local streets from all the deliveries.
I am guilty of using them, are you?