Target is listed as one of the top five risky retailers in the United States as its growth outlook "seriously deteriorates"!

It is learned that according to foreign media reports, US retailer Target has begun to fall into trouble due to continued weak demand and declining customer traffic.

On January 4, Wells Fargo analyst Edward Kelly said Target is "no longer an attractive investment" and is facing a series of ongoing headwinds and challenges, and the retailer's outlook "has deteriorated significantly."

Currently, the headwinds and challenges facing Target include the possibility of continued weakness in general merchandise, negative traffic growth in the fourth quarter, the timing of profit margin recovery, and the return of epidemic issues.

The report said retailers' performance "became less impressive" starting in early 2021 as consumers took a more conservative approach to spending.

Edward Kelly listed Target as one of the "big five" retailers at risk, along with Kroger, Costco, Sprouts Farmers Market and United Natural Foods. The most promising retailers are Walmart, BJ's Wholesale Club and Dollar General.

Target warned in November that its key holiday sales figures might not meet expectations after it held a massive promotion to clear inventory, sending its shares tumbling.

Target's stock price has fallen 35% in the past few months.

Earlier, Target CEO Brian Cornell said at the earnings conference: "Many consumers have relied on borrowing or using savings to pay for their weekly expenses this year, but for many consumers, their savings have been exhausted. As a result, our customers are becoming more sensitive to prices, paying more attention to and responding to promotions, and are increasingly hesitant to buy at full price."

According to new research from PYMNTS, 60.4% of consumers cite discounts or promotions as the primary factor in their choice of retailer. As the cost of goods and services in nearly every category is rising, most Americans are struggling to keep up with their spending. Currently, 60% of consumers say they live paycheck to paycheck.

Target, which joined a group of other retailers in launching January clearance sales last week to combat rising costs, has also announced innovations over the past few months, such as adding Starbucks products to its curbside pickup service and a store remodeling program designed to give retailers more back-of-house execution space.

Editor ✎ Nicole/

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