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Old 08-27-2018, 05:52 PM
 
1,672 posts, read 394,750 times
Reputation: 1457

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Target CEO raves about the state of the economy: This is the best consumer environment 'I've seen in my career'

Target sees unprecedented growth in same-store sales and foot traffic during the second quarter.
CEO Brian Cornell credits the strongest consumer environment he's ever seen for the retailer's solid results.
This follows similarly strong results from companies like Walmart, Kohl's and TJ Maxx owner TJX.
Lauren Thomas | @laurenthomasx3
Published 9:17 AM ET Wed, 22 Aug 2018 Updated 12:37 PM ET Wed, 22 Aug 2018
CNBC.com
Target CEO: We continue to remodel stores Target CEO: We continue to remodel stores
8:01 AM ET Wed, 22 Aug 2018 | 03:27
Consumer spending is back and has never been better as far as Target CEO Brian Cornell is concerned.

"There's no doubt that, like others, we're currently benefiting from a very strong consumer environment — perhaps the strongest I've seen in my career," Cornell told analysts on a call Wednesday.

The retailer's shares are surging after reporting fiscal second-quarter results that beat on earnings, revenue and comparable store sales. Just when many investors have written off brick-and-mortar retailers in the era of Amazon, Target is seeing a huge jump in foot traffic.

"We're seeing a great consumer response ... unprecedented traffic. As we go back and look, we've never seen traffic growth like this," Cornell said Wednesday morning on CNBC's "Squawk Box."

The big-box retailer also said digital sales skyrocketed more than 40 percent during the second quarter, as it's been investing in adding more items to its website and adding more delivery options for online orders. Building on that momentum, Target raised its earnings outlook for the full year.

Its shares climbed more than 5.5 percent in early trading on the news, hitting an all-time intraday high of $88.89.

Target has been focused on reinvesting in its business ever since it laid out a strategy at the start of last year to pour $7 billion into expanding its e-commerce platform, bulking up its lineup of in-house brands, opening new small-format stores and remodeling existing locations. Cornell said those investments appear to be paying off, with Target on Wednesday reporting its strongest same-store sales growth in 13 years.

"On any given day, 90 percent of retail sales are done in physical stores," the CEO said.

A healthy U.S. economy, rebounding consumer confidence and record low unemployment is also benefiting Walmart. It reported earnings last week that also topped analysts' expectations, driving Walmart shares up more than 9 percent in one day.

“You do not want to give Jeff Bezos a seven-year head start.”
Hear what else Buffett has to say

"I think what you're seeing right now from a macro basis is well-run retailers with strong balance sheets that generate cash ... are winning right now," Target's Cornell told analysts and investors. "And there's obviously others right now that can't afford to invest in their store experience, or build capabilities or drive differentiation. And they're giving up share. So there's clearly winners and losers. We certainly think we're migrating to the winners column."

Also reporting quarterly results this week, names like Kohl's and TJ Maxx owner TJX said more shoppers were visiting their stores, spending on everything from jeans and handbags to home goods.

Department store chains Nordstrom and Macy's raised their profit outlooks for the full year, anticipating a strong holiday season.

"The consumer is the strongest since '99," Jefferies analyst Randal Konik said in a research note this week. "Companies are managing inventories very well, digital investments are paying off, real estate is being rationalized ... [Christmas] will be much better than people think."

WATCH: Retail expert says it's as good as it gets

Target today looks like they used to look, it's as good as it gets, says J. Rogers Kniffen WWE CEO Target today looks like they used to look, it's as good as it gets, says retail expert
8:57 AM ET Wed, 22 Aug 2018 | 03:34
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Old 08-30-2018, 08:09 PM
 
Location: Metro Detroit, Michigan
11,920 posts, read 13,340,738 times
Reputation: 12678
He better not boast too much, Obama's/Clintons brownshirts might decide to boycott or disrupt his business in other ways. Far too many butt hurt socialists that are envious of the success of others.
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Old 08-31-2018, 01:50 AM
 
30 posts, read 7,367 times
Reputation: 46
Pure trash. Strongest since '99 oh ok. Well the oncoming crash should re-orient you well. Everything you do, Amazon does better, I am sorry to say.
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Old 08-31-2018, 01:59 AM
 
Location: Out there somewhere...
38,774 posts, read 45,370,770 times
Reputation: 107230
Everybody is talking about how great the economy is, yet they fail to report the cost of living has gone up about 40% the past 2 years. Retired people on social security and others on fixed incomes are not getting more money to keep up with the inflation. And the new trade tariffs are making it worse.
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Old 08-31-2018, 08:55 AM
 
2,292 posts, read 1,436,227 times
Reputation: 4982
Quote:
Originally Posted by wit-nit View Post
Everybody is talking about how great the economy is, yet they fail to report the cost of living has gone up about 40% the past 2 years. Retired people on social security and others on fixed incomes are not getting more money to keep up with the inflation. And the new trade tariffs are making it worse.
I think the country you’re thinking of is Argentina. This is America. We’re the one in North America not South America.
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Old 09-02-2018, 07:48 AM
 
Location: Boston
5,197 posts, read 1,518,536 times
Reputation: 3845
Quote:
Originally Posted by wit-nit View Post
Everybody is talking about how great the economy is, yet they fail to report the cost of living has gone up about 40% the past 2 years. Retired people on social security and others on fixed incomes are not getting more money to keep up with the inflation. And the new trade tariffs are making it worse.
lol....another senseless lie.
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Old 09-02-2018, 09:18 AM
 
Location: The analog world
16,079 posts, read 8,943,614 times
Reputation: 21507
I don't know whether or not it's my stage of life, but I find myself buying less and less at Target and the like. There just isn't much that appeals to me there any more. It would be interesting to see data about the demographics of their customer base.
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Old 09-02-2018, 02:25 PM
 
288 posts, read 431,906 times
Reputation: 893
Target is a discount retailer which sells cheaper and frequently less durable goods than higher end stores. Based on my personal business experience, when discount retailers are up strongly as opposed to other sorts of retailers, it has usually tended to be a warning sign.
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Old 09-03-2018, 04:44 AM
 
15 posts, read 3,896 times
Reputation: 36
This is the case, for example, in Poland. Discount chains through their low prices take customers to specialist stores ... This is not ok ...
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Old 09-03-2018, 05:38 AM
 
Location: Vienna, VA
225 posts, read 112,676 times
Reputation: 254
Quote:
Originally Posted by cedarite View Post
Target is a discount retailer which sells cheaper and frequently less durable goods than higher end stores. Based on my personal business experience, when discount retailers are up strongly as opposed to other sorts of retailers, it has usually tended to be a warning sign.
Over my way Targets are in all the high end areas, their prices are a little higher than Walmart as well. The lower end stores are Kmart/Walmart. If you want an offline higher end store that has a bit of everything, I'm not sure where you would go. I guess Costco? But that is primarily bulk items.
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