Keep Shopping at Target: It’s Where It’s At
Everyone loves Target. And it seems like the store is definitely reaping the benefits. At least if you look at its latest financial report, released at the end of last month. Target Corporation reported its “net retail sales for the four weeks ended August 27, 2011 were $5,292 million.” This marked a jump of 5.4 percent from $5,023 million for the same four weeks of last year. Further, again if you look at figures for last August compared to August 2011, you will find that sales for comparable-store sales jumped up 4.1 percent.
US Economic Upturn?
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Thus the question on economists’ lips is, are these sales figures indicative of an economic upturn? Does the fact that Target has made this increase in sales in the last year mean that the global recession – or at least the United States of America’s part in it – is over, or perhaps on its way out? Chairman, president and CEO of Target Corporation, remained unsure. Gregg Steinhafel remained ambivalent on the subject, commenting, “while the pace of the economic recovery is uneven and uncertain, we are confident in our ability to execute on our strategy, to offer the right balance of extraordinary value, convenience, newness and differentiation and to remain our guests' preferred shopping destination."
Indeed, the top Target figures could simply be indicative of consumer satisfaction with the store, as opposed to an indirect comment on the nature of the direction of the world economy. What might further encourage shoppers to choose Target is that for the last 65 years, the company has donated 5 percent of its income to community grants and programs. The way its profits stand today, that works out as over $3m a week.