Target: From a loser to a big winner
TGTTarget went against the consensus and proved it worthwhile to invest in physical stores
Four years after disappointing investors with its decision to prioritize traditional branches, the retail giant is enjoying a steady rise in revenue, which soared during the pandemic.
At the heart of the strategy: listening to customers and better training employees.
When Target announced its strategy in 2017 to give priority to physical stores to fight Amazon, investors did not try to hide their disappointment.
Apparently, on the day that $7 billion was allocated to promote this strategy, the American retail company’s share fell by 12%.
Four years later, few on Wall Street doubt the justification for investing.
While consumers have abandoned malls and department stores since the plague broke out, they have flocked to Target’s huge, bright, and organized stores.
Last year, revenues jumped 20 percent to $93.6 billion, led by the movement of shoppers in physical stores as well as online commerce.
The company’s stock has soared 170% since Corona’s restrictions began in March 2020, and last week its market capitalization climbed to $130 billion.
Target, which opened its first branch in 1962 in Minnesota, did not always enjoy the sympathy of the public.
In 2013, it went through a difficult period, when the customers’ personal details were revealed in a cyberattack, and at the same time, it began a failed expansion operation in Canada. A year later, Brian Cornell, former CEO of Walmart’s Sam’s Club, was named CEO, with the goal of leading the change.
Target Stock Price: 300% within 2 and a half years.
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