Post Security Breach, Target Does What Target Does Best, Sticks To The Plan

Jan 30 2014, 11:58pm CST | by

It’s been a terrible couple of months for Target Stores. A security breach decimated an already weak holiday selling season, aftereffects that just keep coming and troubling financial results from the chain’s first International expansion into Canada.

The hits just keep coming but Target keeps doing what it does best, sticking to a well researched predetermined game plan.

Target has always defied the odds. It’s a discount department store that made cheap chic by forging partnerships with top designers and bringing otherwise high-end products to the mass market. Target made low-cost high-brow and developed small urban formats to reach younger, hipper shoppers. It was even welcomed into communities when its competition was denied.

While other retailers sped head on into new markets and new product categories, Target kept a slow and steady pace. Walmart and Target both opened their first stores in 1962. Fifty-two years later, Walmart 11,096 stores under 69 banners in 27 countries, and e-commerce websites in 10 countries. Slow and steady Target has 1,921 stores – 124 of which opened last year in Canada – and one Web site, Target.com.

That Target’s logo is the bullseye is appropriate. The retailer developed its strategy long ago, set its sights on the target and rarely wavered. It opens stores in tiny increments each year compared to its biggest competitor, Walmart. There was no rush to cross the border and its entry into Canada — the nice, friendly neighbor to the North of Target’s Minnesota headquarters Canada — was 51 years in the making.

And it didn’t go well, the Canadian stores posted a $238 million loss before interest and taxes.

“While initial sales in Canada have fallen well short of expectations, we remain very confident in the long-term potential of these assets,” said Gregg Steinhafel, president and CEO. And while management remains confident it can hit its goal of $6 billion in sales by 2017, it won’t be easy.

But Target is proceeding in its usual fashion, announcing new stores for 2014 — including nine in Canada — its smallest prototype to date to better advance in urban markets and a couple of designer partnerships and collections for Spring.

Target’s in a tough spot. There is talk of lawsuits, testifying before Congress and fines that  could total more than $1 billion, according to one analyst. There is the shattered trust of shoppers and ongoing investigations. But through it all, Target is putting one foot in front of the other, slowly and steadily walking the path it laid out more than 50 years ago.

Slow and steady.

Source: Forbes Business

 
 

Don't miss ...

 

<a href="/latest_stories/all/all/30" rel="author">Forbes</a>
Forbes is among the most trusted resources for the world's business and investment leaders, providing them the uncompromising commentary, concise analysis, relevant tools and real-time reporting they need to succeed at work, profit from investing and have fun with the rewards of winning.

 

blog comments powered by Disqus

Latest stories

Young heart can heal itself faster
Washington, Oct 31 (IANS) The heart holds its own pool of immune cells capable of helping it to heal after injury, finds research, adding that the harmful immune cells from the bone marrow disrupts this process in adults.
 
 
Hubble captures 'ghost light' from dead galaxies
Washington, Oct 31 (IANS) NASA's Hubble telescope has picked up the faint, ghostly glow of stars ejected from ancient galaxies that were gravitationally ripped apart several billion years ago.
 
 
How to chequemate your creditor (The Funny Side)
Cheques are dying out, a report says. This is a tragic loss of an ancient Asian invention - so I learned from the new Museum of Accountancy in India. That country invented that form of promissory note way back in the Mauryan period (321 to 185 BC), when Westerners were still evolving from jelly-like invertebrates in warm ponds.
 
 
Jailed reporter's family urges Iran to release him
Tehran, Oct 31 (IANS/EFE) The family of Washington Post's Iranian-American reporter Jason Rezaian, held without charges in Iran for more than 100 days, has called on Tehran to set him free.
 
 
 

Latest from the Network

Norway to send troops to Iraq
Oslo, Oct 31 (IANS) Norway announced that it will send 120 soldiers to Iraq. The soldiers will not "be in direct combat with the forces of the Islamic State (IS). They shall, instead, assist with capacity building of...
Read more on Politics Balla
 
Four die as plane crashes into building in US
Washington, Oct 31 (IANS/EFE) At least four people died when a small plane crashed into a building near the Wichita, Kansas, airport in the US, media reported. The preliminary death toll was confirmed by the Wichita...
Read more on Politics Balla
 
Young heart can heal itself faster
Washington, Oct 31 (IANS) The heart holds its own pool of immune cells capable of helping it to heal after injury, finds research, adding that the harmful immune cells from the bone marrow disrupts this process in...
Read more on Business Balla
 
German kidnapped in Nigeria rescued
Lagos, Oct 31 (IANS) A German national, who was abducted a week ago in Nigeria, has been "rescued", authorities confirmed. Ogun state police spokesperson Abimbola Oyeyemi said the hostage was "rescued" Thursday and...
Read more on Politics Balla
 
Somalia's police chief is dead
Mogadishu, Oct 31 (IANS) Somalia's Police Commissioner General Mohamed Sheikh Hassan Ismail has died, officials said. A probe has been ordered into his death. The official unexpectedly fell and died in the course of...
Read more on Politics Balla
 
Hubble captures 'ghost light' from dead galaxies
Washington, Oct 31 (IANS) NASA's Hubble telescope has picked up the faint, ghostly glow of stars ejected from ancient galaxies that were gravitationally ripped apart several billion years ago. By observing the light...
Read more on Business Balla
 
Jamaican discus thrower banned for two years
Monaco, Oct 31 (IANS/CMC) Jamaican discus thrower Traves Smikle has been suspended for two years for using a banned substance, the International Association of Athletics Federations (IAAF) announced. IAAF Thursday...
Read more on Sport Balla
 
How to chequemate your creditor (The Funny Side)
Cheques are dying out, a report says. This is a tragic loss of an ancient Asian invention - so I learned from the new Museum of Accountancy in India. That country invented that form of promissory note way back in the...
Read more on Business Balla
 
110 Mexican women pose nude for US photographer
San Miguel de Allende (Mexico), Oct 31 (IANS/EFE) As many as 110 women posed nude as a group here for US photographer Spencer Tunick, who conducted a photo shoot with the theme of Mexico's Day of the Dead. With just a...
Read more on Celebrity Balla
 
Gibson appointed England bowling coach on temporary basis
London, Oct 31 (IANS/CMC) Former West Indies head coach Ottis Gibson has been appointed as a bowling coach for England on a temporary basis. Gibson will participate in a fast-bowling performance camp in South Africa...
Read more on Sport Balla