Saturday, March 8, 2014

Shoppers still shunning Target...

CNBC reports that not only are Target's sales taking a hit in the aftermath of a data breach that compromised the information of millions shoppers, but that also fewer people are visiting the stores in the first place.

According to a new report from Kantar Retail, only 33% of U.S. households said they shopped at either a Target or SuperTarget in January, which was the retailer's lowest level of shopper penetration in three years. It's also a 22% decline compared with the same month in 2013.

Although the retailer's numbers had been on a downward trend for the past few years - which is not a surprise, given the shift toward online shopping - the big difference was seen during the holiday season, said Kantar Retail senior analyst Rachel McGuire. That's because Target didn't register as big of a bump in shoppers as it typically does in the critical December month. "Our shopper data reflects the extent to which this issue continues to influence shopper behavior," McGuire said.

The largest shift away from the discount retailer was seen among its core demographics - those between the ages of 32 and 49 as well as lower-income shoppers, whose penetration fell by 30%. The impact also took a bigger toll on Target's less-dedicated shoppers. While only 4% of the retailer's monthly visitors said they are less likely to shop at Target going forward, 10% of its overall customer base said they're less likely to shop with the retailer down the line.

1 comment:

58 Cherries said...

Well, I was one of the people hit by data theft. Just had to clear up one of my cards someone was using in another state. Big hassle for me, but hopefully over now. I decided to keep shopping at Target, but I'll admit I was a little pissed off. I think they should maybe do something nice for their customers as an apology. It'd go a long way to heal the wound. As for holiday slump this year - I was super disappointed by their Black Friday deals. I found the years before were better and more cool deals. This year I only got a few dvds instead of a ton plus throw pillows and more. Sad. Also their designer special displays were ho hum to me and a lot of other customers - they couldn't move the merchandise. It was there after the holidays and no one was buying it clearance, either. But what really bugs me lately is the ugly clothes - LOTS of eye searing orange and really ugly prints and designs. The last month or two has been better, but the last year or so has definitely taken a turn for the worst. I keep thinking it looked more like a goodwill in there. I'm glad to see some better clothes for spring, though. I hope it doesn't slide back. I bought a few cute items last time I visited. Target don't fall apart again!