(Logo via Target’s Facebook)
Target reported Nov. 19 a bigger-than-expected drop in sales during its latest quarter, along with cutting its full-year profit guidance.
The company’s stock lost nearly 35% of its value this year and reported three straight quarters of declining comparable sales. The Minneapolis company said it plans to invest about $1 billion more in 2026 in new stores, remodels and an improvement in its digital business, increasing the total cost for the makeover to $5 billion.
Last month, it said it would cut 1,000 corporate employees, roughly 8% of its global workforce. Target also announced a partnership with OpenAI to let customers shop on Target in ChatGPT.
At the beginning of this year, the company ended some of its DEI programs to step away from such policies in the face of severe scrutiny from conservative groups. It also announced the end of its Racial Equity Action and Change (REACH) initiatives this year, under which it had pledged to invest over $2 billion with Black-owned businesses by the end of 2025.
The initiative included plans to add more than 500 Black-owned brands and a funding program from its in-house media company, Roundel, to increase exposure of diverse-owned brands through paid media.
The retailer’s profit fell to $689 million in the three-month period ended Nov. 1, or $1.51 per share. That compares with $854 million, or $1.85 per share, in the year-ago period.
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