WSJ: $TGT CEO's Latest Strategy Shift Abrubt

1) $TGT

“We have to be decisive and get out in front of this to make sure this doesn’t linger through the back half of the year,” Mr. Cornell said in an interview earlier this week.

WSJ headline: Target CEO Says Unloading Excess Inventory Is a Necessary Pain

Subheadline: Brian Cornell’s decision to shed excess goods quickly is the latest abrupt strategy shift for the CEO

2) $TGT daily, weekly, and monthly charts

So in February 2017, on the day Target announced weak holiday sales, Mr. Cornell outlined a comeback plan for the U.S. business at an analyst meeting in New York. Target, he said, would spend billions of dollars to refurbish stores, use stores as e-commerce hubs, introduce better store brands and cut prices.


The plan largely worked, then got a big boost from Covid-19. Comparable sales, those from stores or digital channels operating for at least 12 months, have increased each year since. After the pandemic hit, sales rose 19.3% in the fiscal year that ended in January 2021, and rose 12.7% in the next fiscal year, which ended this past January. Shoppers flocked to new services Target began offering, to buy online and pick up in store parking lots or receive home delivery. Customers bought more furniture, outdoor gear and food to cook at home than before the pandemic. Target added over $25 billion to annual revenue over two years of the pandemic.


Shoppers aren’t buying as many pandemic favorites such as patio furniture and small kitchen appliances, instead spending on food and entertainment. Some items arrived late after shipping delays, Mr. Cornell said. “Now that it is here, the demand signal has changed.”