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Target shares dip on subdued Black Friday traffic

Published 02/12/2024, 16:36
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On Monday, Target Corporation's (NYSE:TGT) stock fell by 2.2% as analysts reported lackluster customer traffic during Black Friday, traditionally one of the busiest shopping days of the year.

KeyBanc highlighted that traffic at Target was low, with an initial surge in the early morning due to the release of Taylor Swift's Eras Tour book and vinyl, which sold out within the first hour.

However, the rest of the day saw traffic that resembled "a normal day."

Deutsche Bank (ETR:DBKGn) observed moderate traffic at Target stores, attributing the subdued activity to inconsistent inventory levels and a lack of organization.

These factors may have contributed to the less than expected turnout of shoppers during a key sales event for the retailer.

Bank of America (NYSE:BAC) (BofA) provided a more detailed account of Target's promotional activities leading up to Black Friday. The retailer reinstated several promotions such as Target Circle Week from October 6 to October 12, its "Deal of the Day" program running from November 1 through December 24, and weeklong deals starting every Sunday from November 3.

Target also launched an "Early Black Friday" promotion from November 7 to November 9. On Black Friday, Target stores opened at 6 am after remaining closed on Thanksgiving Day. Exclusive three-day-only Black Friday weekend deals were offered from November 28 through November 30, with Target noting an increase in the number of deals compared to the previous year.

Despite these efforts, BofA noted that while most stores they visited on Friday had healthy traffic levels, with the toy department seeing the strongest activity, electronics were less popular.

Additionally, a few stores had lines before opening, with customers eager to secure Target-exclusive Taylor Swift merchandise.

The overall picture painted by analysts suggests that Target's Black Friday performance was mixed, with certain promotions and exclusive product releases drawing crowds, but general shopper turnout did not meet expectations.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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