Target Leads The Mass Retailing Pack
By Dana Blankenhorn: Over the last year Costco (COST) is up in price 5.29%, WalMart (WMT) is up 6.17%, but Target (TGT), even with its fall in early trade May 3, is up 15.61%.Why?Its margins aren't growing, and sales are up less than 10% from 2009. Sales gains over Easter trailed analysts' estimates. Same store sales are up 5.6% year-over-year.The reason has to be that the street thinks CEO Gregg Steinhafel, who earned $19.5 million last year, is trying stuff rivals like JC Penney (JCP) (down about 10% over the last year) are just talking about doing:
- Boutique "stores within the store," something Penney has been talking about, but which Target is doing with Cos Bar.
- Smaller stores, something WalMart has been talking up but which Target is doing in LA.
- Big name brands, dropping the Amazon Kindle for (who knows) maybe Apple products? Or Microsoft's?
All mainline retailers areComplete Story »