Thanks for joining me today. We will be taking a look at Target’s shares, which have been falling after the retailer reported a decline in profits and warned of a soft holiday quarter. This is in contrast to Walmart, which recently reported strong results and saw its stock climb higher.
One factor that may be contributing to Target’s struggles is organized retail crime, which has resulted in $400 million in extra profit loss this year. As the economy worsens, it is not uncommon for people to turn to crime to make ends meet. This is evident not only at Target, but likely at other companies as well.
Another issue facing Target is the weak holiday season, which is expected due to the large number of job layoffs across various industries. Companies such as Amazon and Twitter have announced layoffs, and it is likely that other businesses are also cutting jobs in an effort to protect their bottom line.
It is worth noting that this is exactly what the Federal Reserve (FED) wanted. When people lose their jobs, they have less capital to spend, which can lead to a stronger dollar value. While the price of goods may not necessarily fall, they may stabilize or at least not increase as quickly. This could be seen in the housing market, for example, where prices may pull back slightly.
When we look at Target’s stock performance, we can see that it has been struggling on both a monthly and weekly basis. It is unclear at this time whether the company will be able to recover and regain its footing.
Overall, Target’s disappointing earnings report and the impact of organized retail crime and job losses are concerning for the company and its investors. It will be important to keep an eye on the company’s performance in the coming months to see if it can turn things around.
