Target Sales Flat Amid Retail Gains & Family Dollar Cites Weak Holiday Sales

[Sherman A1]

Apparently the Holidays were not that good to these two Retail Chains.

MINNEAPOLIS — Target Corp. here conceded on Thursday that its same-store sales in December were “essentially flat,” but confirmed that its profit projections for the fourth quarter were still on track.

The report came amid what some said was a strong late-season comeback for retailers, after consumers appeared to temper their spending. Overall comparable-store sales were up about 4.5% among retailers reporting December results on Thursday — led by Costco Wholesale Corp.’s 9% increase.

Read More: http://supermarketnews.com/retail-amp-financial/target-sales-flat-amid-retail-gains#ixzz2HZJZlb86

MATTHEWS, N.C. — Rapid increases in the mix of consumables and tobacco are coming along with greater pressure on profits for Family Dollar Stores, which on Thursday said it was reducing its earnings forecast for the fiscal year after posting disappointing first-quarter results and lower-than-expected holiday sales.

Net earnings of $80.3 million for the first quarter, which ended Nov. 24, decreased by 0.1% from last year’s first quarter despite a 12.7% increase in net sales to $2.4 billion, and a 6.6% comparable-store sales increase. Quarterly gross margins as a percent of sales tumbled by 112 basis points, reflecting the greater percentage of low-margin consumable items making up the sales mix, including food and tobacco.


Read More: http://supermarketnews.com/retail-amp-financial/family-dollar-cites-weak-holiday-sales#ixzz2HZJjTJCa

[Skidmore]

1. When your economy is dependent on selling

trinkets and doodads over essentials, people get to a saturation point. You can only have so many doodads. Our nation is choking on junk and right now is driven by the fashion and style industries. When we start getting serious about investing in infrastructure and education. When we start paying people living wages, perhaps some of them for repairing items that are produced to last rather than blow up within six months, we will become more stable. Right now we are a captive consumer market for junk.

[Sherman A1]

2. Agreed

Combined with the movement of entertainment items away from physical units to storage on hard drives or the cloud such as in the case of books, Dvd's and music there become fewer items to sell. Your E-reader or tablet contains (or will contain) many items that required shelf space in stores and the distribution chain (creating jobs along their path). In some senses it is as you have pointed out the effect of too much doodads (or as I like to call them decorative doodads), the lack of paying people enough upon which they can keep up with rising costs and a shifting of the products within the distribution chain.

It is never just one thing.

[liberal N proud]

3. You can't expect the Family Dollar people to shop at Target and the Target people at Family Dollar

All the good paying jobs are gone and with everyone working retail, they can't afford to buy anything more than the essentials.

[2pooped2pop]

4. Target has a Macy's attitude and Walmart merchandise.

To me, Target seems a bit snooty. Very few sales noted when I visited this season. 50 cents off is not a sale to me. Don't waste my time to come read the red sale sign, then give me 50 cents off while Amazon is giving half off.

Target's merchandise looks to be little different than Walmart merchandise to me. I tried but found little reason to shop there.

Same with JC Penny's. They want Macy prices for Walmart quality.

Hopefully some rich bastards who are calling the shots will eventually realize that when you don't pay your employees a livable wage, they can't buy your shit. When you build your shit in another country, then bring it here for us unemployed to buy, well, we can only buy food, gas, and rent.

[WinkyDink]

5. I agree with every point you make here!! I've never understood the attraction of Target, e.g.