Target reports disappointing Christmas sales

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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.

While the company said it should still be able to meet its fourth-quarter profit target, the sales report sent shares of aim (TGT) Premarket trade down 8%.
But Target, the country's third largest retailer, lags behind Walmart (WMT) and Costco (COSTS), isn't the only traditional brick-and-mortar retailer to report problems. Department store chain Macy & # 39; s (M) announced last week that it would close 29 stores. JCPenney (JCP) and Kohls (KSS) also reported weak sales.

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.

America has turned its back on large department stores

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.