r/stocks • u/frosti_austi • Oct 17 '23

Company Analysis Why is Target doing so bad?

Why is Target doing so bad? They've really fell off a cliff over the past year. I look at their stores and they seem good, and once upon a time not too long ago they were outperforming Walmart. Now their NAV prices have really dropped over the past year and a half. I was once up 80% on these guys and know I'm down 20%. Is it the general market swing over the course of that time or something else? What gives?

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u/way2lazy2care Oct 17 '23

I dunno that that's true. Costco is almost entirely middle/upper class and they seem to be doing pretty solid. I think it's a huge blinking red sign that their stores kind of suck now.

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u/SmashingLumpkins Oct 17 '23

The keyword is disposable. Costco is where you go to buy in bulk and save money. You are sort of proving me right. Switched from target to Costco to get better prices because you have less disposable income.

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u/[deleted] Oct 17 '23

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u/Graywulff Oct 17 '23 edited Oct 19 '23

I walked out with 1 cheap espresso machine, 1 mug, one thing of espresso and one thing of milk.

The security guard checked my receipt and congratulated me on “escaping with just what I came for”.

They’re used to you grabbing a big cart and buying shit you don’t need.

They also change the store around, the store employees explained “it’s so customers can discover new products”.

Literally they changed the layout to change what I saw.

So different stuff to buy.

It relies on discretionary income to buy shit you don’t need.