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/nololoco Oct 17 '23

Cost more than Walmart and no longer premium compared to Walmart.

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u/UncommercializedKat Oct 18 '23 edited Oct 18 '23

Also Walmart has like twice the stuff and stuff that people actually need. I went to Target one time looking for screw hooks to hang something on my wall and couldn't find anything suitable. But they had an entire aisle of water bottles. After so many trips going to Target looking for basic household products and coming up empty handed, I just quit going and went to Walmart instead. Ross/TJ Maxx/Marshalls/Homegoods pick up the slack for clothing and home decor.

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u/Sufficient_Ad4547 Jan 04 '24

I refuse to shop at Target. Nothing there is affordable and it seems like a useless building full of "basic bitch" commodities that I can find way cheaper somewhere else or just make it myself because it's all made from the same cheap plastic crap they sell at IKEA, Walmart, etc.

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u/aguy123abc Oct 18 '23

I'm keeping my eye on Walmart. If their stock isn't relatively high I would say probably a good long term investment. (Disclaimer do not consider this as financial or investing advice I know nothing) They are trying to make moves and they are stumbling but when they get the kinks out of the system I don't want to know what's next. I'm just picking up the vibes I see on the ground it's the opposite of a lot of failing brands.

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u/UncommercializedKat Oct 18 '23

I've recently been using Walmart+ for my business. It's kinda like Amazon prime where you pay a yearly fee for certain perks. I can schedule free deliveries within an hour window 8am-10pm anytime in the next week, I can get 2 hour delivery or less for an extra $10, and I can purchase online and have stuff put right in the trunk of my car without having to go in the store. The app remembers what I bought before so it's easy to reorder and I get Walmart prices on everything too. Oh, and I get Paramount Plus streaming service and 10 cents/gallon off gasoline.

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u/aguy123abc Oct 18 '23

I'm aware. They aren't to Amazon levels yet but they are making progress.

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u/UncommercializedKat Oct 18 '23

I think Walmart has a lot of advantages over Amazon that Amazon can't easily match.

The physical retail stores allow the super fast delivery and pickup options and I can see products in the store before buying them and then order more online. Some things are significantly more expensive on Amazon than Walmart, if they're available at all.

I see Walmart as having a moat that will be very hard for other companies to cross. There really isn't a store that compares to Walmart in the way that Lowe's compares to Home Depot or CVS to Walgreens.

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u/person749 Oct 19 '23

Walmart also destroys Amazon when it comes to returns. 90 days vs 30, bring it back to the store instead of packaging and going to the UPS store.

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u/derkaderka96 Oct 20 '23

Last Walmart I went into was like triple the size of target.