The retailer only reported a 1.4% increase in sales in stores open for at least one year in November and December. This was below the company's expectations for the reporting period and significantly below the growth of 5.7% in the previous year.
Target saw a 19% increase in online sales. However, it was reported that several categories of goods presented a challenge.
"The sustained strength in several categories was offset by an unexpectedly weaker performance in key vacation categories such as electronics, toys, and parts of the home [goods], which together make up around a third of the company's Christmas business, "the statement said.
The company also announced a change in its leadership positions in the wake of disappointing Christmas sales.
Janna Potts, a 30-year-old veteran of the company, will retire as Executive Vice President and Chief Stores Officer and will be replaced by Mark Schindele, a 20-year-old veteran of the company. It also announced two chief merchandising officers. Christina Hennington will oversee merchandising for hardline and essentials, while Jill Sando will oversee merchandising for style and own brands.