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15 stores isn't a big deal considering their number of stores. Demographics shift over time making some formerly profitable stores less so. If it was 40 or 50 stores it would be bigger news. I wouldn't worry about Target. There is going to be a gradual shift over time as online retail continues to increase market share so it will hurt traditional retail somewhat, but at some point that gain in marketshare from the Amazon's of the world will slow and eventually flatten. I'd wager that's still about 10 years away. Till then expect to see more store closings, especially with the less viable/relevant retailers that are more vulnerable to online competition.
I think Target needs to figure out what it needs to be. When Walmart gained its marketshare over the last 15 years, Target decided to go upscale which worked but it was when the recession started up. Target was good trying to do that even despite the Kohl's of the world as well as Penny's and Sears.
I don't think this is due to bad management of Target.
It's a solid company.
Walmart is also closing some stores.
Retail is in recession i tell you that!!!
Just like industrials
Corporate survival is of little consequence to CEOs and top management, it is simply a conduit for getting super wealthy.
Management borrows money at 1% (free money from the Feds) and creates debt for the corporation.
Management uses the borrowed money to buy back management stock options.
Thus money is quickly and heavily transferred to management. The survival of the corporation is of no consequence as is the loss of jobs. Management simply doesn't care about growth anymore because there is zero incentive. It is the new economic system courtesy of free money.
Location: East of Seattle since 1992, 615' Elevation, Zone 8b - originally from SF Bay Area
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Quote:
Originally Posted by TimHortonsCoffee
Target absolutely mishandled the expansion into canada. Closed up shop their entire stores here within 2 years
When the Target expansion into Canada failed, they lost a tremendous amount of money, which lowered there profits significantly. Closing the less productive stores here is just one way of making that up. I would not consider this to be related to online shopping, nor to the economy.
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