Everyone is looking to the trends of 2017, investors included, and despite having a struggling portfolio to show on the financial front this year, eyes are turning to Target.
Why, in the face of sales declines and a few investment struggles, is the big red dot piquing financial interest?
Over a five year span the retailer has consistently gone up nearly 8% according to Investorplace, touting consumer loyalty, wiggle room for shipping costs, a younger demographic, and room for digital growth as key reasons to keep your faith (and your money) in Target.
Despite a bumpy ride for 2016, including a slip in sales and a revenue just starting to make a turnaround, the financial source sees consistent potential in the chain versus others on the buy-side.
Investorplace reports that while the store “doesn’t have the same buzz as it once did,” average Target shoppers are younger than those of its competitors and tend to make about 25% more money, meaning a willingness to overlook extra shipping costs that come with online shopping. And increasing online shopping growth is where speculations sat Target’s bread and butter might be, with online sales currently accounting for less than 5% of the company’s total sales, despite a 26% uptick in the third quarter.
With weight still in the market, including the nickname “Tar-jay” among more loyal shoppers, what will the next year hold for this and other big retailers?
Deli Market News will be sure to let you know every step of the way.