Jul. 20, 2015, 1:38 PM
- A bold forecast from Cowen Research on Amazon has some deep implications for the broad retail sector if it proves accurate.
- Cowen sees Amazon nabbing 14% of the U.S. apparel and accessories market by 2020, up from ~5% this year.
- The Amazon Effect impacts retail companies differently depending on if they sell their brands on the Amazon website and at what prices. Chains that could see an impact from a higher level of apparel buying through Amazon include Macy's (NYSE:M), Dillard's (NYSE:DDS), J.C. Penney (NYSE:JCP), Aeropostale (NYSE:ARO), Abercrombie & Fitch (NYSE:ANF), L Brands (NYSE:LB), Kohl's (NYSE:KSS), Pacific Sunwear (NASDAQ:PSUN), and Zumiez (NASDAQ:ZUMZ). The trend also puts high-end sellers such as Kate Spade (NYSE:KATE) and Michael Kors (NYSE:KORS) in a tighter box on how to sell through Amazon.
- A disturbing trend for Wal-Mart (NYSE:WMT) and Target (NYSE:TGT) is that a higher percentage of their customers also bought apparel through Amazon in the first half of 2015.
Jul. 15, 2015, 8:56 AM
- Today's promotional battle between Wal-Mart (NYSE:WMT) and Amazon (NASDAQ:AMZN) could have two winners (besides consumers) and many losers, according to retail analysts.
- The retail machines could pull forward some back-to-school sales away from rivals and smaller chains without the online reach.
- Shopatron's John Pincott notes it's nearly impossible for consumers to miss the Amazon and Wal-Mart deals due to the broad marketing efforts and allure of a Black Friday-type event.
- Amazon initiated the promotional battle with a one-day sale celebrating the company's 20th anniversary, while Wal-Mart continues to counterpunch against the moves coming out of Seattle.
- Margin worries will continue to be in the background while the heavyweights slug it out for top-line growth.
- What to watch: Companies in the line of fire of the promotional salvos include Staples (NASDAQ:SPLS), Best Buy (NYSE:BBY), Target (NYSE:TGT), Costco (NASDAQ:COST), and Office Depot (NASDAQ:ODP). There's also an alarming trend in play for department stores (JCP, DDS, KSS, M, TJX) with more BTS family shopping for clothing turning online.
Jul. 13, 2015, 8:00 AM
- Wal-Mart (NYSE:WMT) plans to launch an aggressive online sale on Wednesday in a countermeasure to Amazon's (NASDAQ:AMZN) Prime Day savings promotion on July 15 for Prime members.
- Sales on over 2K items will be rolled back at Wal-Mart for at least 90 days.
- The company has also lowered the minimum order amount to qualify for free shipping to $35 from $50 for at least a month.
- Best Buy (NYSE:BBY) and Target (NYSE:TGT) are also looking for a July sales boost with Black Friday sales planned around the timing of the Amazon event.
Jul. 11, 2015, 1:14 PM
- It has become quite a bit easier for large retail chains to go with the "Made in the USA" mantra due to the higher cost of producing goods in China.
- Chinese labor costs on average are now 61% of the level of the U.S. compared to just 17% about 15 years, according to an estimate from Boston Consulting Group.
- That 39% edge is reduced even further if transport and supply chain costs are factored in.
- Wal-Mart (NYSE:WMT) and Nike (NYSE:NKE) are two of the majors buying more from U.S. suppliers due as much to the economic benefit as the patriotic flavor. Target (NYSE:TGT), Macy's (NYSE:M), and Costco (NASDAQ:COST) have also highlighted American product lines recently.
Jul. 10, 2015, 8:21 AM
- Target (NYSE:TGT) takes on the Internet of Things concept with the unveiling of a new lab in San Francisco open to the public.
- The Target Open House store will demonstrate the various ways household functions can be tied together by digital technology.
- The company plans to use the store to test which connected household products might sell well on a broader scale.
- One example of a connected house feature is the automatic brewing of coffee when a baby wakes up early in the morning.
Jul. 9, 2015, 12:15 PM
- The FDA says food chains with over 20 stores will have until December 1, 2016 to post calorie information on menus.
- The controversial measure will also be aimed at retail giants that serve food such as Target (NYSE:TGT), Wal-Mart (NYSE:WMT), and Costco (NASDAQ:COST) - as well as movie theater chains (AMC, CKEC, RGC, CNK).
- Though many fast-food companies already post calorie information on menu boards, the issue could be tricky on an operating side for pizza chains which will have to account for calorie counts for various toppings choices.
- The strict position of the FDA has been fiercely opposed by some Democrats and Republicans.
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Jun. 26, 2015, 8:51 AM
- BMO Capital downgrades Target (NYSE:TGT) to Market Perform from Outperform with the analyst team expressing a bit of concern over the sudden exit of CMO KathrynTesija
- Tesija has been in the middle of Target's fresh food initiative and Lilly Pulitzer roll-out.
- Though a change in strategic direction isn't expected from the company, the senior management direction has been unsettled.
- Previously: Target reassigns its Chief Merchandising Officer (Jun. 25 2015)
Jun. 25, 2015, 9:19 AM
Jun. 18, 2015, 5:23 PM
Jun. 15, 2015, 7:15 AM
- CVS Health (NYSE:CVS) acquires the pharmacy and clinic business of Target (NYSE:TGT) for $1.9B.
- The deal will cover more than 1.6K locations spread across 47 different U.S. states.
- The pharmacies will continue to operate within Target stores rebranded under the CVS format.
- The agreement also calls for Target and CVS to partner on ten new small-format stores.
- Target sees extra traffic resulting from the strategic agreement with CVS, while the expansion falls under a plan to CVS to grow its store base.
Jun. 9, 2015, 11:08 PM
- Target (NYSE:TGT) declares $0.56/share quarterly dividend, 7.7% increase from prior dividend of $0.52.
- Forward yield 2.84%
- Payable Sept. 10; for shareholders of record Aug. 19; ex-div Aug. 17.
Jun. 9, 2015, 11:04 PM
- Target (NYSE:TGT) confirms its buyback allowance has been increased by $5B to $10B.
- The error added to Target's decidedly uneven history with its website.
- Previously: Target adds $5B to buyback allowance (June 9)
- Previously: Target denies story of boost to dividend and buyback (June 9)
Jun. 9, 2015, 4:36 PM
Jun. 9, 2015, 3:40 PM
Jun. 3, 2015, 10:58 AM
- Target's (TGT +0.7%) clothing lines this fall will lean heavily to the tartan side, according to Women's Wear Daily.
- The plaid style will be included on over 360 products - including apparel for men, women, kids, and babies.
- A special section of Target.com will be devoted to plaid-only products such as cell phone cases and dinnerware.
- Though large apparel sellers such as Target have to make earlier bets on consumer preferences than fast-fashion retailers, execs with the company think tartan falls in line with current trends.
Jun. 1, 2015, 12:49 PM
- Iconic food and beverage brands continue to grow out of favor with U.S. consumers, according to a new report from Rabobank.
- Many Q1 earnings reports tipped off weakness at well-known F&B brands.
- The bank notes that the increasing purchase power of the millennial generation is a major factor in the shift as e-commerce accounts for a higher mix of purchasing.
- A willingness of major retail chains such as Target (NYSE:TGT), Kroger (NYSE:KR), and Costco (NASDAQ:COST) to attempt to differentiate themselves with new concepts and products has also contributed to well-known brands slipping.
- Rabobank thinks major food and beverage players can still show strong growth rates if they are nimble with their strategy and use M&A wisely to catch fresh brands on the upswing.
- Related stocks: K, GIS, CPB, MDLZ, PEP, KO, HSY, SJM, DPS, KRFT, OTCPK:NSRGY, OTCPK:NSRGF.
Target Corp. engages in owning and operating of general merchandise stores. It also operates SuperTarget stores with a line of food and general merchandise items and offers an assortment of general merchandise, including many items found in the company's stores and a complementary assortment,... More
Industry: Discount, Variety Stores
Country: United States
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