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Target faces AFT boycott over ICE response in Minneapolis

admin — Fri, 27 Mar 2026 01:12:46 +0000

A major teachers’ union is calling for its members to skip Target when buying back-to-school supplies, the latest twist in a series of boycotts that have targeted the big-box retailer as its turnaround shows signs of life, CNBC has learned.

The AFT, or American Federation of Teachers, passed a resolution Thursday that calls on its 1.8 million members and others to shop at local stores and not at Target, saying the company did not respond adequately to the surge of federal immigration enforcement in the retailer’s hometown of Minneapolis this winter. Federal agents shot and killed two U.S. citizens, Renee Good and Alex Pretti, during the operation.

The labor union, which is affiliated with the AFL-CIO, plans to urge a similar resolution at AFL-CIO’s convention in Minneapolis this summer and at conventions held by other organizations, including the NAACP and LULAC, AFT President Randi Weingarten said.

Target declined to comment.

Target’s annual sales have declined for the past three years in a row, but the company’s new CEO Michael Fiddelke laid out an ambitious plan earlier this month to refresh its stores, add more enticing merchandise and return to sales growth. The retailer said it expects net sales to rise about 2% this fiscal year compared with the prior year and anticipates sales will grow every quarter.

It is unclear if and how much the AFT’s call for a back-to-school boycott could hurt Target, which is trying to win back customers. Earlier this month, Atlanta area pastor Jamal Harrison Bryant announced the end of a yearlong boycott of the company, called Target Fast, which had started because of the company’s rollback of major diversity, equity and inclusion initiatives. At a press conference, Bryant said Target has demonstrated its commitment to the Black community with investments in Black businesses and donations to Historically Black Colleges and Universities. Yet other activists leading a separate boycott, including former Ohio state Sen. Nina Turner, have said they continue to call for shoppers to steer clear of Target.

The retailer has attributed some of its sales losses to backlash to its DEI decision, along with other factors including company missteps with merchandise, a weaker store experience and softer discretionary spending.

At an investor meeting in Minneapolis in early March, Fiddelke stressed that it’s “a new chapter for Target.” He said the company is “doing the work to build connection with new guests, deepen relationships with existing guests and earn back trust with guests we’ve disappointed.”

In a separate email to Target employees earlier this month, Fiddelke highlighted how the retailer is putting its strategy into action, including through its move to cut prices on more than 3,000 items and the opening of its 2,000th store. He said Target has made progress with winning back trust, too, noting the end of the Target Fast boycott.

He said Target has had “ongoing conversations with the organizers” of the boycott, who have “acknowledged the meaningful contributions Target has made, and will continue to make, to the Black community.”

In an interview with CNBC, Weingarten said the AFT’s boycott is focused on what she called Target’s lack of response to the surge of aggressive and violent immigration enforcement in its own backyard. Weingarten said the AFT sent a letter to Target and met with Target staff to encourage them to speak up before the union moved to pass the resolution.

“Target was negotiating with our colleagues in the civil rights community for weeks and weeks and weeks,” she said. “They could have very easily dealt with both [concerns about DEI and immigration enforcement] and they chose not to.”

She said Target is “more worried about standing with the Trump administration than the communities that made them a profitable company.”

Fiddelke joined dozens of executives from Minnesota-based corporations in co-signing a letter in late January calling for an “immediate de-escalation” in the state after the fatal shooting of Pretti. However, the letter did not name the shooting victims Pretti or Good or call out the president, his immigration policies or federal agents.

Fiddelke also shared a video message with employees that more directly acknowledged current events, but stopped short of calling for ICE agents to leave the city or for accountability in the two shooting deaths.

Weingarten described the CEOs’ letter as “insulting” and said it “basically blamed both sides.”

She said the union, which includes many teachers, can have the greatest financial impact during the back-to-school shopping season this summer and fall. By passing the resolution now, she said, the AFT can get the word out to members and “give Target enough time to come back to its senses.”

The post Target faces AFT boycott over ICE response in Minneapolis appeared first on Our Story Insight.

Target (TGT) Q4 2025 earnings

admin — Wed, 04 Mar 2026 05:32:19 +0000

MINNEAPOLIS — Target on Tuesday posted another quarter of falling revenue and customer traffic at its stores, though its shares rose as the retailer’s earnings beat estimates and it said it is poised to end its sales slump.

The big-box retailer, which is in the middle of a turnaround effort, said sales and traffic trends picked up in the last two months of the holiday quarter. Then sales turned positive year over year in February, which is the beginning of the current quarter.

Speaking to CNBC on Tuesday, Target CEO Michael Fiddelke said the company is “out of the gates strong this year.” While he noted that one month of growth “does not make a trend,” he said the February sales increase gives him “confidence” the company is moving back to growth.

For the current fiscal year, Target expects net sales to rise about 2% compared with the prior year and anticipates that metric will grow in every quarter of the year. That net sales growth for the year would reflect a small increase in comparable sales, the retailer said. The company added that its new stores and nonmerchandise sales, such as advertising and membership, would contribute more than 1 percentage point of growth.

Sign at the entrance to a Target store in Venice, Florida.

Erik Mcgregor | Lightrocket | Getty Images

Target said it expects full-year adjusted earnings per share to range from $7.50 to $8.50. Its adjusted earnings per share for the most recent full year were $7.57.

Fiddelke, who stepped into the company’s top role on Feb. 1, will try to persuade Wall Street that the retailer is gaining sales momentum at an investor meeting on Tuesday morning at Target’s Minneapolis headquarters.

Here’s what the company reported for the fiscal fourth quarter compared with Wall Street’s estimates, according to a survey of analysts by LSEG:

Earnings per share: $2.44 adjusted vs. $2.16 expected
Revenue: $30.45 billion vs. $30.48 billion expected

Target shares closed more than 6% higher on Tuesday.

The big-box retailer missed Wall Street’s revenue expectations for the fourth quarter, despite analysts already anticipating weaker sales. Its quarterly revenue dropped about 1.5% from $30.92 billion in the year-ago period.

For four quarters in a row, customer traffic across the company’s stores and website has fallen.

Target’s net income for the three-month period that ended Jan. 31 fell to $1.05 billion, or $2.30 per share, compared with $1.10 billion, or $2.41 per share, a year earlier. Excluding one-time items, including legal settlement gains and business transformation costs, Target’s adjusted earnings per share were $2.44.

Target is trying to end several years of disappointing results driven by a mix of company missteps and economic factors. Its annual sales have been roughly flat for four years, after a significant jump in annual revenue during the Covid pandemic.

Shares of the company have dropped by nearly 32% over the past three years, as of Monday’s close, though they have risen nearly 16% so far this year.

As it tries to turn its business around, Target cut 1,800 corporate jobs in October, marking its first major layoff in a decade.

Some of Target’s customers told CNBC they are shopping elsewhere after noticing changes like sloppier stores and lackluster merchandise, or objecting to the company’s social stances, like its rollback of major diversity, equity, inclusion initiatives. The company acknowledged backlash to its DEI decision had hurt sales and led to market share losses to competitors.

Target’s challenge with attracting shoppers has persisted. Comparable sales, an industry metric that takes out short-term factors like store openings and closures and is also called same-store sales, decreased 2.5% year over year in the fourth quarter. That reflected a 3.9% comparable sales decline at Target’s stores and a 1.9% increase across Target’s website and app.

Transactions across Target’s stores and website fell by 2.9% year over year. The average amount that customers spent during those transactions grew 0.4% year over year.

In an interview with CNBC in the fall at Target’s headquarters, Fiddelke said he would prioritize regaining the company’s reputation for style and design, improving the customer experience, and using technology to boost its performance.

He echoed those key goals on Tuesday, telling CNBC the company wants to prioritize “incredible product and [an] incredible experience.”

Last month, Target also announced it would invest more in store labor and cut about 500 roles at distribution centers and regional offices to try to address shoppers’ concerns about out-of-stocks, long checkout lines and other store conditions. However, the company declined to say much more it would spend.

“We know we have to equip our teams to have the resources they need to deliver an incredible store experience,” he told CNBC on Tuesday.

At an investor presentation Tuesday, Chief Financial Officer Jim Lee said that Target will step up its spending this year to support the company’s turnaround. He said capital expenditures will total about $5 billion this fiscal year, an increase of more than $1 billion from last fiscal year.

That spending will go toward Target’s supply chain, technology and investment in stores. It plans to open more than 30 new stores and remodel more than 130 stores this fiscal year.

Target is known for selling clothing, home goods, seasonal items and other trend-driven discretionary merchandise that customers often buy on impulse when browsing the aisles on a “Target run.” Yet higher prices of food, utilities and other necessities, fueled by inflation and tariffs, has dampened U.S. consumers’ willingness to buy items that aren’t on the shopping list.

Fiddelke told CNBC he does not see anything “remarkably different” about shopper behavior now relative to recent quarters.

He also did not say how he expects President Donald Trump’s new 10% global tariff to affect the company after the Supreme Court struck down broader duties last month. He told CNBC “we’ll find out together what the next year holds on the tariff front.” Fiddelke also did not say whether Target would take legal action to get tariff refunds, as companies like FedEx and Costco did.

Target’s results in recent years have been at odds with those of retail rivals like Walmart, Costco and T.J. Maxx’s parent, TJX, which have posted stronger sales results, attracted shoppers across incomes, and seen growth in categories like apparel and home goods, areas where Target has struggled.

Along with offering products like groceries, clothing, and home goods, Target is trying to sell more advertisements and membership subscriptions to customers. The company’s nonmerchandise sales jumped more than 25% in the fourth quarter, driven by membership revenue more than doubling from a year ago, double-digit percentage gains in its ads business, Roundel, and over 30% growth in its third-party marketplace.

Same-day deliveries through Target Circle 360 grew more than 30% year over year. The subscription service costs $99 per year or $10.99 on a monthly basis.

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Multiple class action lawsuits target Wynn data breach

admin — Thu, 26 Feb 2026 14:21:53 +0000

Wynn Resorts is facing mounting legal trouble in the wake of its recent cybersecurity incident, as a wave of class action lawsuits moves through federal court. The company maintains the situation is under control, but plaintiffs argue the fallout is far more serious.

Wynn previously told ReadWrite that “an unauthorized third party acquired certain employee data” and that, while it brought in outside cybersecurity experts to investigate, the incident “has had no impact on our guest experience, our operations or our physical properties, which are all fully operational and open for business.”

In court filings, however, plaintiffs describe what they say is a sweeping failure to protect highly sensitive personal information. They contend the breach has exposed workers and others to long-term risks of identity theft and financial fraud.

Early lawsuits against Wynn Resorts outline scope of alleged breach

The first of the federal complaints, Reed v. Wynn Resorts Limited, frames the case as a failure to secure personal data that customers and employees were required to provide. It states that Wynn had a duty to safeguard names and Social Security numbers but did not take reasonable steps to do so.

The Reed complaint also takes issue with Wynn’s breach notification. It says: “Omitted from the Notice Letter were the identity of the cybercriminals who perpetrated this Data Breach, the details of the root cause of the Data Breach, the vulnerabilities exploited, and the remedial measures undertaken to ensure such a breach does not occur again.”

Another lawsuit, Li v. Wynn Resorts Holdings, LLC, similarly alleges that “the notorious ransomware group ShinyHunters gained unauthorized access to Defendant’s IT Network.” That filing contends Wynn failed to properly secure and safeguard personal information including names, Social Security numbers, and employment details.

Livingston complaint details scope and notice issues

In Livingston v. Wynn Resorts Holdings, LLC, Donyil Livingston expands on the alleged failures. The complaint suggests that Wynn “failed to carry out its duty to safeguard sensitive Private Information and provide adequate data security.”

Excerpt from the Livingston class action complaint filed in the U.S. District Court for the District of Nevada.

It also alleges that Wynn has “failed to disclose crucial details, including: (i) the exact beginning and end date of the Data Breach (ii) the date(s) of Wynn’s investigation; (iii) an explanation as to why Wynn allowed the Data Breach to occur, (iv) the root cause of the Data Breach, (v) the vulnerabilities exploited, (vi) the remedial measures undertaken to ensure such a breach does not occur again…”

According to Livingston, plaintiffs now face long-term consequences as a result of the exposure of their data.

Gebo complaint stresses ongoing harm

In a separate case, Gebo v. Wynn Resorts Limited et al., the plaintiff, Cheryl Gebo, claims that Wynn’s security measures were inadequate even before the breach. The complaint states that “Wynn failed to invest the resources necessary to protect the Private Information of Plaintiff and Class members.”

Like Li’s complaint, the filing is limited to employment-related data. It refers to “current, former, and prospective Wynn employees” and focuses on employment-related information like positions, salaries, start dates, and Social Security numbers. It does not frame the class as customers or guests.

Excerpt from the Gebo class action complaint filed in the U.S. District Court for the District of Nevada.

It goes on to argue that “Due to Wynn’s flawed security measures and Wynn’s incompetent response to the Data Breach, Plaintiff and Class members now face a present, substantial, and imminent risk of fraud and identity theft and must deal with that threat forever.”

The Gebo filing also stresses the broader value of the compromised data, stating plainly: “PII is a valuable property right.”

Across the complaints, plaintiffs argue that Wynn had legal and equitable duties to safeguard the personal information it collected and stored. They seek damages, injunctive relief, and other remedies on behalf of proposed classes that could include hundreds of thousands of individuals.

Wynn has previously told us that it would not provide comment on ongoing legal actions.

Featured image: Ken Lund via WikiCommons / CC BY-SA 2.0

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Walmart, Target earnings put focus on new CEOs Furner, Fiddelke

admin — Thu, 19 Feb 2026 01:29:51 +0000

Walmart CEO John Furner, left, and Target CEO Michael Fiddelke.

Walmart (L) | Getty Images (R)

When Walmart and Target report holiday earnings this quarter, investors may quickly brush off those results.

Instead, they will likely focus more on the two big-box retailers’ futures under new CEOs and the outlook for U.S. consumers in 2026.

Both companies had leadership changes this month: Walmart CEO John Furner and Target CEO Michael Fiddelke, both longtime company insiders, took on their roles on Feb. 1.

The rival retailers have contended with the same economic challenges. U.S. consumers are still spending, but buying selectively, as inflation and tariffs fuel higher prices for groceries and other essentials and cause some shoppers to think twice about discretionary purchases.

Yet while both Walmart and Target have new CEOs, their paths forward look distinctly different.

Walmart’s stock has shot up by about 163% over the past five years and has risen about 24% over the last year, as of Tuesday’s market close. It hit a 52-week high Tuesday. Shares of Target, on the other hand, have tumbled by about 40% over the past five years and dropped 10% over the past year.

The retailers’ stock market performances reflect their sharp divergence in sales results. Walmart is attracting shoppers across incomes and gaining momentum with online sales and higher-margin businesses like advertising. Target is struggling with slower sales and weaker store traffic. Walmart expects its full-year net sales to rise by 4.8% to 5.1%. Target, on the other hand, is on track for a full-year sales decline.

Walmart CEO John Furner inherited a business that’s “fundamentally sound” and “on a great trajectory,” said Neil Saunders, managing director and retail analyst at GlobalData.

“In many ways, his job is to keep the ship steady and see what he can do to add to the speed,” he said.

On the other hand, Target CEO Michael Fiddelke has to “sell the Target of the future” after four years of roughly flat annual sales, Saunders said.

“What I think he’ll want to do is to inject some excitement, to say, ‘Look, I’m really excited about this role. I’m really excited about where Target could go. We are going to change things. We’re going to become a different business. We’re going to get back to what we were before,'” he said.

Here’s a closer look at what we know so far about the CEOs’ plans and what investors will listen for during earnings:

Walmart Inc. signage during the company’s listing at the Nasdaq MarketSite in New York, US, on Tuesday, Dec. 9, 2025.

Michael Nagle | Bloomberg | Getty Images

Walmart: Extending the winning streak

Walmart will report its fiscal fourth-quarter earnings before the bell on Thursday.

The retail giant has had a busy few months: Along with the company getting a new CEO, its market cap surpassed $1 trillion in early February. In December, the company switched its stock listing from the New York Stock Exchange to the tech-heavy Nasdaq, a nod to its aim to be perceived by investors more like its key rival Amazon, and it was added to the Nasdaq-100 index in January.

When longtime CEO Doug McMillon stepped down from the role, he said in an interview on CNBC’s “Squawk Box” that he was passing the torch to Furner as the company accelerates its artificial intelligence adoption and reshapes its business and the way its customers shop.

Walmart has announced deals with two major AI chatbot platforms, OpenAI’s ChatGPT and Google’s Gemini, to make it easier for shoppers to find and buy its products.

Furner, who like his predecessor moved up the ranks at Walmart during decades at the Arkansas-based company, oversaw the largest segment of the company in his previous role as CEO of Walmart U.S. Furner got picked in part because of his success expanding Walmart’s digital business, a pivotal piece of its future, said Kate McShane, a retail analyst for Goldman Sachs.

Walmart Inc. (NYSE: WMT) announced that its Board of Directors has elected John Furner, 51, to succeed Doug McMillon, 59, as President and Chief Executive Officer of Walmart Inc., effective February 1, 2026.

Courtesy: Walmart Inc.

Walmart in May posted its first profitable quarter for its e-commerce business in the U.S. and globally, as its home deliveries, ads business and third-party marketplace all grow.

Corey Tarlowe, a retail analyst at Jefferies, said Walmart investors “want more of the same” — namely more e-commerce growth, grocery success and market share gains with a wider range of customers, including more affluent shoppers.

Yet Walmart’s results for the holiday quarter could mark an inflection point in the world of retail. Amazon could take the crown as the largest retailer by annual revenue for the first time, even though the company makes a lot of its money from tech services like cloud computing and advertising.

Saunders said the comparison isn’t apples to apples, but is “symbolically important” as the two competitors try to outmatch one another. Walmart has grown in part by leaning on stores to deliver groceries and offer pickup for online orders. Amazon, which recently announced it would shutter Amazon Fresh and Go stores and turn some into Whole Foods locations, had tried to “bolt on” fresh food to its huge existing volume of online orders, he said.

As the nation’s largest grocer by revenue, Walmart also is fending off the expansion of privately held discounter Aldi, and could feel the heat turned up by supermarket operator Kroger, which recently hired Walmart alumnus Greg Foran as its new CEO.

In a memo sent to employees on his second day as CEO, Furner said his leadership will be shaped by his more than 32 years at Walmart, adding he believes the company “is well-positioned to lead in this next era of retail.”

“This next era will unlock new ways to bring our people-led, tech-powered vision to life,” he said in the memo. “By leveraging our global scale, we can better serve customers and members with speed, reliability, and greater experiences, wherever they choose to shop with us.”

He said that strategy is already coming to life as “technology and AI are helping reduce friction in our work, simplify decisions, improve inventory flow, and free up time so you can focus on what matters most: serving customers and members and one another.”

Customers shop at a Target store on Feb. 10, 2026 in Chicago, Illinois.

Scott Olson | Getty Images

Target: Chasing a comeback

For Fiddelke, Target’s earnings report could be the deepest look yet at the cheap chic discounter’s road map to return to growth.

The company is chasing a comeback and plans to share its holiday-quarter results and current fiscal year expectations on March 3 at a financial meeting at its Minneapolis headquarters.

The big-box retailer has struggled with a laundry list of challenges. Store and website visits have declined. Customers have complained about store conditions, including out-of-stock items and long checkout lines. And Target has also dealt with boycotts and backlashes to the company’s political and social stances, such as its rollback of diversity, equity and inclusion pledges and its decision not to publicly oppose the surge of immigration enforcement in its hometown.

As sales decline, Target has shrunk its workforce. It cut 1,800 corporate roles last year in its first major layoff in a decade.

Target’s earnings report is more highly anticipated than Walmart’s because there are so many questions about its turnaround strategy and how long it may take, Goldman Sachs’ McShane said. Investors have debated how much the company may need to invest in merchandising, marketing and store labor to boost its sales.

“Walmart has pursued a much more aggressive digital agenda than Target between their omnichannel and their automation and their marketplace,” she said.

She added that while Target doesn’t want to be Amazon or Walmart, “they have to figure out who they want to be and how to compete.”

Target’s Chief Operating Officer Michael Fiddelke will take over as CEO from Brian Cornell.

Courtesy of Target

Already, Fiddelke has sent signals that he is making changes. Last week, he announced in an email to employees that Target will step up store staffing, though Fiddelke and the company declined to say how much it would invest in additional hours for employees. It is also cutting about 500 roles at distribution centers and regional offices.

Fiddelke shook up Target’s leadership team effective Sunday, bringing back the role of chief merchant and announcing a high-profile departure. Cara Sylvester, formerly chief guest experience officer, became Target’s chief merchandising officer, and Lisa Roath, formerly chief merchandising officer of food, essentials and beauty, succeeded Fiddelke as chief operating officer.

At the same time, Chief Commercial Officer Rick Gomez is leaving the company after more than a decade, and Jill Sando, chief merchandising officer for apparel and accessories, home and toys and entertainment division Fun101, will retire.

Target has also opened a new concept store in New York City’s SoHo neighborhood. While the location is one of a kind, its focus on fashion may inspire more changes at stores across the country and in the suburbs, McShane said.

That push to feature stronger products is a major piece of Fiddelke’s strategy. In an email to employees and customers during his first week, Fiddelke laid out four priorities: sharpening Target’s merchandising, improving the customer experience, speeding along technology and strengthening the company’s workforce and its surrounding communities.

Jefferies’ Tarlowe said Target’s upcoming investor event is “a chance for them to essentially communicate to everybody and say ‘We hear what you want. Here’s how we are going to deliver on it.'”

“Change is happening, it’s a question of does the market see it and appreciate it,” he said.

Correction: This story has been updated to reflect that Walmart switched its listing from the New York Stock Exchange to the Nasdaq in December and was added to the Nasdaq-100 index in January. A previous version misstated the date it moved to the Nasdaq stock market and mischaracterized its move to the Nasdaq-100.

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Target steps up investment in store staffing, cuts about 500 other roles

admin — Mon, 09 Feb 2026 23:54:23 +0000

Target said Monday that it’s stepping up store staffing, but eliminating about 500 jobs at distribution centers and regional offices as it tries to win back shoppers who have complained about sloppier shelves, out-of-stock items and longer checkout lines.

In an internal employee memo obtained by CNBC, the big-box retailer said it’s making changes to the way it runs and oversees stores to improve the customer experience, a top goal of new CEO Michael Fiddelke.

To do that, Target said it will reduce the number of store districts — the geographic areas that its nearly 2,000 stores are broken into, which have dedicated staffing — and put money toward more hours for front-line store employees.

As part of the changes, Target is laying off around 500 people, including about 100 at the store district level and about 400 across its supply chain sites, the internal email said.

“This change also fuels our ability to put significantly more payroll in our stores — primarily in additional labor and hours where needed most, but also in new guest experience training for every team member at every store,” the email said.

The email was written by Adrienne Costanzo, chief stores officer, and Gretchen McCarthy, chief supply chain and logistics officer, and sent to Target employees across its headquarters and store field teams on Monday afternoon.

A Target spokesperson declined to specify the amount of additional investment planned for Target stores, but said the announcement will not change starting wages for store workers, which range from $15 to $24 per hour depending on the location.

For Target, the organizational shift marks one of the first changes under Fiddelke, formerly the company’s chief financial officer and chief operating officer, who stepped into the top job on Feb. 1.

Fiddelke took the helm as the company aims to get back to growth. Its annual sales have been roughly flat for four years, and it cut 1,800 corporate roles last year in its first major layoff in a decade.

Customers, vendors and investors say the company had gotten weaker in some of the key areas where it used to stand out. For example, some shoppers said Target had lost its edge with attentive customer service and trendy, fashion-forward merchandise that earned the company its “Tarzhay” nickname.

The company has also faced backlash and boycotts from customers over a string of political and social stances over the past few years, including its decision to sell and then pull some Pride Month merchandise, its embrace of and reversal of major diversity, equity and inclusion initiatives and, most recently, for not speaking out against the surge of immigration enforcement in its hometown of Minneapolis.

Along with Target’s self-inflicted struggles, the company has faced stiffer competition from peers like Walmart and a tougher economic backdrop. Consumers have been more selective in recent years about discretionary purchases and impulse items — Target’s sweet spot — while paying more for necessities like groceries and rent.

In an interview with CNBC at Target’s Minneapolis headquarters in October, Fiddelke said his leading priorities as CEO would be restoring Target’s reputation for style and design, providing a more consistent customer experience and using technology to speed along the business.

Yet he added that Target needs to simplify an operation that’s become more complicated for store managers and store employees in recent years as they not only stock shelves, but also pick orders for curbside pickup or packing cardboard boxes headed to customers’ homes.

“If you’re a store manager now, yes, you’re supporting your in-store guest, and you’re also running a fulfillment business that’s gotten pretty big,” he said in the October interview. “And I think we’re just now fully appreciating, ‘All right, we’ve got to make sure that we’re doing both really well, and it’s more complex than it used to be.'”

Last year, the company made another store-related change to try to clean up and smooth over its operations. Almost all of Target’s online orders are fulfilled in stores, which has taken up more of employees’ time and stores’ back rooms. In response, the company shook up its online strategy, designating some stores as locations where employees pick and pack online orders to ship to customers’ homes and dropping that altogether at other locations.

Target is expected to share more details about its turnaround strategy, along with its holiday-quarter results and full-year forecast, on March 3. It will host an event for investors at its Minneapolis headquarters.

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Target faces protests after ICE detains US citizen employees at Minnesota store

admin — Tue, 13 Jan 2026 19:09:00 +0000

Target has come under pressure from protesters and pols in its home state of Minnesota after ICE agents detained two employees of the big box retailer who were US citizens.

Federal immigration agents detained the workers inside a Richfield, Minn., store on Jan. 8 after a confrontation that began in the parking lot and spilled into the vestibule, according to local officials and witness accounts.

One of the employees shouted, “I’m literally a US citizen!” as agents escorted him toward a vehicle, The Wall Street Journal noted.

Federal agents entered a St. Paul store — with Border Patrol Commander Gregory Bovino — without a warrant and detained two US citizens, on January 8, 2026. AP

The duo, Jonathan Aguilar Garcia and Christian Miranda Romano, were doing drive-up duty when they were stopped by agents led by a senior US Border Patrol commander, officials said.

Minnesota state Rep. Michael Howard said the agents entered the store without a warrant and physically detained the workers, while family members and witnesses alleged the incident amounted to racial profiling.

The Department of Homeland Security later said on social media that one individual had been arrested for “assaulting a federal law enforcement offers [sic],” which the defendants’ families and local officials denied.

Both employees were eventually released.

One was reportedly dropped off injured and crying at a nearby Walmart parking lot while the other was briefly taken to a detention center before being let go.

The Post has sought comment from Target, DHS, ICE and US Customs and Border Protection.

Garcia and Romano were not immediately available for comment.

Protests erupted outside the Richfield Target store days after the detentions, with demonstrators demanding the retailer take steps to protect workers and customers from federal immigration agents operating on its property.

US CBP agents are seen outside of a Target store in St. Paul, Minn., on Sunday. AP

Activists chanted, held signs and confronted store management during a Saturday demonstration that drew local residents and faith-based groups.

Organizers said they asked Target to train employees on how to respond to immigration agents, including informing them that access to private areas of stores requires a signed warrant.

Protesters also urged the company to publicly oppose immigration enforcement actions at its locations, arguing that Target’s silence had fueled anger in a community already on edge.

“It’s odd for them at this moment, when Minnesota is under sort of occupation, that they are silent,” said Ben Whalen, a former Richfield City Council member who helped organize the protest.

Video from Richfield, Minnesota shows BP agents detaining a teenager working at a Target store. The teen identified himself as a U.S. citizen and had a passport on him, even though U.S. citizens are not legally required to prove their citizenship to ICE.pic.twitter.com/0PGTD2o2RH

— WarMonitor (@TheWarMonitor) January 8, 2026

Whalen said the group met with the store’s manager to press for clearer policies and stronger protections for employees following the incident.

Federal immigration enforcement has surged across Minnesota in recent weeks, with ICE and Border Patrol agents conducting operations in residential neighborhoods, retail parking lots and inside big-box stores.

The activity intensified following a major federal deployment that has netted hundreds of illegal immigrants — including dozens accused of serious violent offenses — and rattled residents, according to officials.

Tensions exploded after the Jan. 7 fatal shooting of Renee Nicole Good, a 37-year-old US citizen, by an ICE agent in Minneapolis, with the incident sparking days of protests and sharp political backlash.

Demonstrators flooded streets and gathered outside government buildings and federal targets, with Minneapolis Mayor Jacob Frey and other officials calling for ICE to leave the city as investigations into the shooting continue and public anger over the federal presence shows no sign of easing.

Graffiti reading “We’ll do it again, ICE out now!” is seen on the exterior wall of a Target store in Minneapolis on Jan. 11. AFP via Getty Images

In the early phase of the operation, agents arrested roughly 300 people in a two-day sweep in the Minneapolis area, according to federal officials, with at least 10 identified as accused killers or violent child sex offenders.

Federal immigration enforcement has played out at major retailers other than Target across Minnesota.

Immigration officials have detained people inside Walmart stores and in parking lots around the Twin Cities in recent days, according to local officials.

Bovino walks out of a Target store in St. Paul on Sunday. AP

Videos circulating online appear to show agents confronting individuals inside stores and using retail locations as staging areas while operations are underway.

Home Depot parking lots have similarly become frequent sites of enforcement activity, particularly because day laborers — many of them immigrants — have long gathered there seeking temporary construction work.

Activists have urged the company to intervene or discourage the raids, but Home Depot has said federal agents are permitted to operate in publicly accessible areas and that the company does not coordinate with ICE or CBP.

The Post has sought comment from Walmart and Home Depot.

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AI tools drive Christmas sales, and Walmart, Target want in

admin — Sun, 14 Dec 2025 16:06:38 +0000

Holiday shopping has always felt like a “chore” for Amrita Bhasin.

Between deciding what to buy, comparing prices and checking reviews, the 24-year-old retail tech CEO said she spent more than 15 hours each year buying gifts for her friends and family, a process that took the joy out of giving.

But this year, Bhasin said she did all of her shopping in a fraction of the time and even had a little “fun” — all thanks to her new personal assistant: ChatGPT.

“I feel like I’ve got that physical store associate that I’m talking to, so I feel like I’m getting better recommendations. I actually think my tendency to buy is higher because of ChatGPT,” Bhasin, based in Menlo Park, California, told CNBC. “It has really changed the game.”

Bhasin is one of the many shoppers turning to AI platforms like OpenAI’s ChatGPT, Google‘s Gemini and Perplexity this holiday season to help them buy gifts for their loved ones, and maybe a few for themselves, too. Whether consumers use them to get gift ideas or compare prices, AI platforms are poised to reshape the shopping experience and drive billions in revenue this holiday season as it becomes harder to get discovered on traditional search platforms.

In a report published last month, Salesforce said it expects AI to drive a staggering $263 billion in global online holiday sales this year, representing 21% of all holiday orders.

Though estimates vary widely, surveys conducted by Visa, Zeta Global and other organizations found that between 40% and 83% of consumers plan to use AI for shopping this holiday season. Meanwhile, AI traffic to U.S. retail sites surged 760% between Nov. 1 and Dec. 1, according to Adobe.

While AI shopping is in its early stages, initial reads on how shoppers are interacting with it show the opportunity it can bring for retailers. Shoppers arriving on retail websites from generative AI platforms are 30% more likely to buy something and about 14% more engaged than those coming from non-AI sources, meaning they’re spending more time on the site and are less likely to leave immediately, Adobe found.

These AI-fueled shopping visits now generate 8% more revenue per session, the firm found. AI tools can also help shoppers spot deals and aid lesser-known brands in getting discovered — about half of the gifts Bhasin bought this year came from brands she’d never shopped before.

“It’s where consumers are going, because they’re just asking questions around, like, ‘Hey, where can I find the best gift under $20 for my niece that cares about these things?'” said Kimberly Shenk, the founder and CEO of Novi, a tech firm that helps brands adjust to AI shopping.

The surge in AI shopping has led retailers big and small to rethink their strategies to ensure they’re showing up where customers expect them to be. Walmart and Amazon have each launched their own AI shopping assistants, and others, including Walmart, Target and Etsy, have partnered with OpenAI so customers can search for items or buy products without leaving ChatGPT.

Apparel retailer PacSun said it hopes to join OpenAI’s platform and in the meantime is reformatting its website so its teen-friendly clothes will show up in AI searches. Others are changing their budgets, directing funds away from SEO, or search engine optimization, and into AEO, or answer engine optimization, and hiring outside firms to help them navigate the shift.

Shenk said her company has seen a “major surge in demand” from retailers and brands that have started to see a steep decline in traffic from social media ads and search engines.

“I’ve heard so many brands talking about their paid advertising in Meta and all these different places really just not performing and ultimately seeing a ton of that transition over to AI mode in Google, ChatGPT, Perplexity,” Shenk said. “I think people were caught off guard … so brands are really scrambling to figure out, ‘How do I know if I’m visible? I have no idea if I’m even showing up. I have no idea how I’m showing up, but I’m seeing all my traffic drop off, and I got to figure that out. Now.'”

Brands are walking a tightrope. They have to adjust to consumers who are using AI to discover products, but still be present through traditional channels for those who prefer old-fashioned shopping. While AI companies and retailers themselves have made massive investments in the chatbot shopping experience, some consumers also say it doesn’t yet measure up to searching for gifts themselves.

Walmart, Target and others join the AI race

As more shoppers start their gift searches on AI chatbots, some of the country’s biggest retailers, including Walmart, Target and Etsy, have announced their own strategies to try to attract customers through AI assistants.

Walmart announced a deal in October with OpenAI that will enable shoppers to both find and buy items without leaving ChatGPT. Yet the big-box retailer hasn’t shared a launch date.

Etsy and many Shopify merchants, including Glossier, have also signed deals with OpenAI for its Instant Checkout feature, which will initially allow customers in the U.S. to make single-item purchases. Instant Checkout launched with Etsy in late September, and ChatGPT has begun to roll out a few Shopify merchants, including Skims, Vuori and Spanx, an OpenAI spokesperson said.

Target announced a deal last month to allow customers to shop Target’s app within ChatGPT. The beta feature enables shoppers to purchase multiple items in a single transaction, including groceries, and choose if they want delivery or curbside pickup.

On the other hand, Amazon — an online retail behemoth where many shoppers begin their product search — has taken the opposite approach. It has moved to block external AI chatbots, including those developed by OpenAI, Google and Meta, from crawling its website to try to stop them from pulling in product listings as part of their answers.

Amazon has gone a step further by sending a cease-and-desist letter to Perplexity AI to try to prevent users of its AI browser, Comet, from purchasing its items. The startup described Amazon’s legal threat as “bullying.”

Along with their different strategies with outside tech companies, Amazon, Walmart and Target are among the retailers who have built their own AI-powered chatbots in the hopes of reeling in curious shoppers during the holiday season and beyond.

On Walmart’s app, customers are greeted by a yellow smiley-faced agent called Sparky that can answer questions and recommend products. Amazon has a shopping assistant called Rufus. And Target has an AI-powered tool, Target Gift Finder, for the second holiday season in a row.

On Walmart’s earnings call in November, CEO Doug McMillon said agentic AI will be one of the growth drivers for the retailer’s e-commerce business. He said the technology will “help people save time and have more fun shopping.”

Walmart has added other capabilities for Sparky, such as recommended shopping lists for parties. Incoming CEO John Furner also said the assistant will eventually be able to remind customers about items they may want to reorder.

Tracy Poulliot, senior vice president of shopping experiences for Walmart U.S., told CNBC that “customers are really starting to rely on these GenAI assistants to take on more of a problem-solving approach than your traditional item-by-item search experience.”

So far, Target said, thousands of customer have used its Gift Finder, with common searches about sports, beauty and wellness, cooking and apparel gifts. In a statement, the company said it had early insights that the tool was driving higher engagement and larger shopping carts than the year prior.

Prat Vemana, Target’s chief information and product officer, said the retailer is already seeing changes in how customers are looking for items on its website and app. About 25% of its customer searches are descriptive and conversational in phrasing, rather than keyword-based, he said.

How retailers are overhauling digital marketing

Zoom In IconArrows pointing outwards

Shopping research feature in ChatGPT.

Courtesy: ChatGPT

Since the dawn of online search, SEO has guided online marketing strategies and evolved into a game of stuffing relevant keywords into the back end of product listings to ensure they pop up on Google.

For example, if a shopper was looking for a new green sweater, Googling “green sweater” would bring up a slew of product matches from retailers, with some links appearing higher than others if they were sponsored.

“You pay somebody and you spend money, you get yourself listed on top,” said Shirley Gao, the chief digital and information officer at PacSun. “Now [with AI], there’s no way you can pay anybody. This is very authentic.”

When searching for products on an AI platform, a consumer might write a few sentences, explaining the event they need the product for and sharing their preferences, location, body type and size.

The AI platform then hunts for credible information to ensure it’s a product worth buying. It looks for keywords, but also other data like reviews, credible media reports and information about the item’s materials.

OpenAI’s ChatGPT ranks results based on what best matches the shopper’s request, not based on ads, paid placement or whether a company has a business deal with OpenAI, a spokesperson said. Retailers who are partners with ChatGPT provide OpenAI with direct product feeds, which help make sure listings are more up-to-date. In some cases, they are integrated to allow for Instant Checkout in the chat.

ChatGPT decides how to rank merchants who sell the same product by considering factors including availability, price, quality, whether a merchant is the primary seller and whether Instant Checkout is enabled, the company spokesperson said.

Brands CNBC spoke with said this evolution is forcing them to rethink their entire media, content and e-commerce strategies. SEO still matters — but the information they’re putting on the back end of their websites is evolving.

Gao said her team has been reformatting PacSun’s website so it’s easier for AI platforms to read it, including through new gift and style guide pages. She said those product listings share more details like item specifications and customer feedback.

In an interview with CNBC, Target’s Vemana said the retailer historically tracked how it showed up in customers’ online searches. Now, he said, it wants to make sure it shows up better in AI chatbots’ search results.

To increase visibility, he said, Target is providing richer descriptions of its merchandise, such as listing unique features like sustainable fabrics or explaining how a product fits into a trend or theme.

A shopper at a Target store ahead of Black Friday in Jersey City, New Jersey, US, on Tuesday, Nov. 25, 2025.

Michael Nagle | Bloomberg | Getty Images

Michael Wieder, a Brooklyn-based dad who co-founded baby and toddler goods retailer Lalo, said he and his team have spent time considering the questions people could be putting into AI platforms and ensuring product listings answer them.

For example, instead of keyword stuffing product listings with basic attributes like the material, size and color of the item, his team has been putting in more detailed information like “good for small spaces,” “great for apartment living” or “best gifts for kids under one year old.”

“I’m looking for the best gift for a child that is, you know, this age that lives in this place,” Wieder said in an interview. “We’re taking it a step further in how we construct the infrastructure of our website and the content that lives within our website.”

Ethique Beauty, which sells shampoo and conditioner bars in retailers like Ulta Beauty, Wegmans and Whole Foods, has “completely changed” its approach to search, leading to a 90% increase in traffic from AI platforms in the past six months, CEO Erica Cocilova said in an interview.

“When you’re thinking about what you need as a consumer, your shopping doesn’t necessarily start with products,” Cocilova said. “People are searching for things like, ‘I need scalp health,’ right? Or ‘my scalp is flaky. I’m struggling with oily scalp. My hair is too dry.’ They’re looking for solutions.”

Cocilova and her team combed through the business’s customer service FAQs, talked to shoppers, examined reviews and scoured the internet to get a better idea of what shampoo customers sought. Then, they added more information to product listings, including brand certifications and details about the company’s supply chain.

They also took the biggest questions consumers had — like “how to sleep with curly hair” — and created blog posts answering them.

“Any hair brand could be talking about that, but we talk about it in a way that’s got super dense, rich content and then ties it back to how our products are different and address the needs for curls,” Cocilova said.

The changes have led more shoppers to Ethique’s products through its own website and its partners, and the company has enjoyed a boost in sales. Even so, the shift to optimizing for AI search has required a steep investment in both internal staff and consulting relative to SEO, a cost other businesses have also had to take on as they try to stay relevant.

“What I would say is the return is better, because the person that ends up on your site, or any site, to shop is just that much more educated,” she said. “They’re not getting to your site and having to do as much research, right? They’re there to shop.”

When AI falls short

Though AI platforms are pointing many shoppers in the right direction, not every tool hits the mark. When CNBC asked Target’s Gift Finder for ideas based on personalized scenarios, the chatbot answered with links to gift guides and repeated itself instead of delivering specific product recommendations.

Through a company spokesperson, Target said the chatbot’s results include “a variety of gift recommendation items grouped by category.” He said the company’s tool is learning from the customer interactions and that Target is regularly updating its algorithms

While AI platforms can be effective when people need to do product research or are looking for something highly specific, some consumers prefer the traditional shopping experience.

Diana Tan, a 39-year-old startup founder based in Seattle, asked ChatGPT to help her build a capsule wardrobe earlier this year and provided a slew of information about her body type, preferences and budget. Instead of a curated set of options, she said she was repeatedly served boring basics like black shirts, gray pants and black turtlenecks.

“It just became almost like talking to a demented grandmother, where you’re just constantly trying to remind it, ‘Okay, I really want something that is in this price range. No, this is too expensive. Please stop sending me this,'” Tan said.

“And then they’ll come at me like, ‘Here’s a black turtleneck again.’ Okay. No. Please stop sending me black turtlenecks. I really didn’t want this the first time.”

Ultimately, Tan gave up.

“I think it takes the joy out of shopping,” she said. “So much of shopping is still very much just browsing. … After a while, I’m like, well, you know, it’s actually more fun and more interesting for me to just go to Nordstrom Rack, or, like, anywhere else, and just look for what I actually want.”

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Target stacking up on protein supplements while capitalizing on weight loss drug trend

admin — Wed, 10 Dec 2025 06:45:59 +0000

The rapid adoption of GLP-1 weight loss medications — drugs like Novo Nordisk’s Ozempic and Wegovy and Eli Lilly’s Zepbound and Mounjaro — is reshaping how Americans eat and shop.

It’s also changing how major corporations do business.

From new product lines to expanding certain categories, companies are trying to capitalize on the lifestyle shifts prompted by the popular drugs.

“We’re like at the tip of the iceberg in terms of what I think this is going to mean for how it changes consumer behavior,” Lisa Roath, Target’s chief merchandising officer of food, essentials and beauty, told FOX Business.

Target has been tracking emerging trends to help drive its product purchasing decisions as it contends with subdued traffic and stiff competition.

Target buyers are expected to stay plugged into what’s happening in culture, including what influencers are talking about and what’s circulating in consumers’ feeds, according to Roath.

One core behavior trend is how medications are directly shifting customer demand toward higher-protein and higher-fiber items.

“Everyone’s looking for protein,” said Roath.

But she said that it’s not the only item in demand due to these drugs either.

Roath said the company is seeing supplements “continue to explode as people are looking at what they can add to their diet.”

She said GLP-1 users often fall short nutritionally because of appetite suppression, which is helping drive demand in the category.

The rise of weight loss drugs such as Ozempic and Wegovy has changed the way Americans eat and shop, along with how major corporations operate. REUTERS

“The reality is, if you’re taking in fewer calories, you’re just not hitting the threshold, the minimum threshold that you might need in a day,” she said.

Target plans to expand shelf space in early 2026 to make room for more protein items like nutrition bars and supplements to cater to this uptick in demand.

But the changes go beyond just food.

As consumers experience weight changes and adopt more active lifestyles, Target is seeing increased interest in apparel and home-fitness categories too.

“Business is absolutely expanding across a number of those categories,” Roath said, adding that Target is already seeing “a little bit of a tail of that growth” in areas like athletic wear and home-fitness equipment, including weights.

Among those companies, Target has been alert to current trends to make product decisions necessary to keep up with its competitors. Getty Images

In recent years, GLP1-s, which were originally created to help patients with diabetes, quickly became some of the most sought-after drugs because of their weight loss effectiveness.

Morgan Stanley projected that the weight loss medication market could reach $150 billion by 2035 due to rapid adoption of the medication.

About 11% of the global eligible population of 1.3 billion people could be on obesity drugs by that time, especially as research suggests other potential benefits of obesity drugs in the treatment of other diseases, according to estimates published by Morgan Stanley Research earlier this year.

In the U.S., currently the biggest market in the world for obesity drugs, there are about 8 million patients on the drugs.

According to Morgan Stanley’s May 2025 report, that number could rise to 30 million in 2035, or about 20% to 25% of the obese population, a potential market of $80 billion.

Target has also increased apparel in its home fitness categories, with consumers experiencing weight changes and adapting to more active lifestyles. Tamara Beckwith

Target is far from the only company adjusting its business around these medications.

In 2024, Anna Mohl, CEO of Nestlé Health Science, a division of Nestlé that sells dietary supplements, said it is “uniquely positioned to support” the changing nutritional needs of consumers who are using GLP-1s. It launched a platform to offer “holistic and personalized care for consumers” with tailored products and expertise from medical professionals.

“We have brands and expertise across our portfolio to support needs that can include preserving lean muscle mass, managing digestive upset, supporting an adequate daily consumption of micronutrients and more. Along with women’s health and healthy aging, GLP-1 companion products are a key solution that we’re focusing on,” Mohl said.

Major North American consumer packaged goods company Conagra Brands also began labeling items that it considers GLP-1 friendly.

The products have what the company calls an “on track” badge, indicating that the products are high in protein, low in calories and a good source of fiber.

“The badge is designed to help consumers easily identify nutritious and convenient options that suit their dietary needs. Whether you’re using GLP-1 medications, transitioning off them, working toward natural weight management or simply focused on maintaining a healthy lifestyle, these products are tailored to meet a variety of needs,” the company said in its press release.

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Danone North America launched a yogurt, Oikos Fusion, in August that was directly advertised to support the nutritional needs of GLP-1 users.

Danone described it as the first yogurt in the category “designed to support muscle maintenance and digestive health, tailored specifically for those on weight-loss journeys, including GLP-1 users who face unique nutrition challenges.”

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Target (TGT) Q3 2025 earnings

admin — Wed, 19 Nov 2025 11:33:01 +0000

The Target bullseye logo is seen on the outside of its store at the Lycoming Crossing Shopping Center.

Paul Weaver | Lightrocket | Getty Images

Target posted a drop in quarterly sales and lowered its full-year profit guidance on Wednesday as the big-box retailer saw choppy spending and shoppers hunting for value.

Despite its ongoing struggles, Target stuck by its sales guidance for the all-important holiday season, saying it expects sales to decline by a low single-digit percentage in the fourth quarter. It said it expects adjusted earnings per share for the year to come in between $7 and $8, lowering the high end of its previous range of $7 to $9. Its new range would come in lower than last year, when adjusted earnings per share were $8.86.

On a call with reporters, incoming CEO Michael Fiddelke declined to say when he thinks the company’s sales would turn positive again, but said Target is making progress.

“We are focused every day on making the right investments and the right decisions to get Target back to growth as quickly as possible,” he said.

Fiddelke, who is Target’s chief operating officer and former chief financial officer, will step into the CEO role on Feb. 1. The company announced in August that he would succeed longtime CEO Brian Cornell.

He said Target will step up investment next year to try to turn around its stores and boost sales by increasing capital expenditures to $5 billion, a 25% year over year jump.

Here’s what Target reported for the three-month period that ended Nov. 1 compared with what Wall Street expected, based on a survey of analysts by LSEG:

Earnings per share: $1.78 adjusted, it was not immediately clear how that compared to the $1.72 expected
Revenue: $25.27 billion vs. $25.32 billion expected

Target’s sales have been roughly stagnant for four years as it faces stiffer competition and has grown weaker in some of the areas that set it apart in the past, including its eye-catching merchandise, its well-organized stores, and its friendly and helpful customer service. Some customers also boycotted the retailer after it rolled back key diversity, equity and inclusion programs, a dynamic that Target blamed in part in May for its weaker sales results.

Shares of the company have tumbled, too. As of Tuesday’s close, Target’s stock has fallen about 67% since the company’s all-time high in late 2021 and dropped about 35% so far this year.

Fiddelke laid out three priorities on the day he was named Target’s next CEO: strengthening Target’s reputation as a retailer with stylish, well-designed merchandise, providing a more consistent shopping experience online and in stores, and using technology to move the business forward.

At the time, he said he wouldn’t wait to start making changes.

Last month, Target announced it would cut 1,800 corporate jobs — its largest layoff in a decade. It has taken steps to sharpen its merchandise and get back its fashion sense, including sending its designers to rodeos and ski lodges for inspiration. And it’s tweaked its online fulfillment strategy at stores to try to free up employees’ time to stock shelves and assist customers.

On a call with reporters about third-quarter results, Fiddelke pointed to a few other moves the company has made. He highlighted Target Trend Brain, a generative artificial intelligence-powered tool that helps the company’s designers and merchants identify what colors and styles are popular. It also is using synthetic audiences, AI models that simulate how real customers might respond to products or marketing campaigns, before launch.

Yet Target’s challenges in winning over shoppers persisted in the most recent quarter.

Customers made fewer trips across Target’s stores and website and spent less during those visits. Traffic dropped by 2.2% and average transaction amount fell by 0.5% year over year.

Comparable sales, an industry metric that excludes one-time factors like store openings and closings, decreased 2.7%. Digital sales grew 2.4%, driven by more than 35% growth of same-day deliveries.

Target’s fiscal third-quarter net income dropped about 19% to $689, or $1.51 per share, from $854 million, or $1.85 per share, in the year-ago period. Revenue fell from $25.67 billion in the year-ago quarter. Excluding one-time costs such as severance packages, Target’s adjusted earnings per share was $1.78.

Digital sales increased 2.4% year over year, driven by more than 35% growth in same-day deliveries.

Fiddelke told reporters that Target saw “some volatility” in the quarter. Sales in both August and October were about flat as customers shopped for back-to-school and Halloween, but September sales fell about 4% year over year.

Chief Commercial Officer Rick Gomez said consumer behavior didn’t change from the previous quarter, with shoppers “stretching budgets and prioritizing value through spending where it matters most, especially in food, essentials and beauty.”

Gomez and Fiddelke acknowledged other challenges specific to the third quarter, such as the pause of Supplemental Nutrition Assistance Program, or SNAP, benefits during the government shutdown.

To capture the attention and dollars of lower-income shoppers, Target last week cut prices on 3,000 food and household products. Target has also set the price of some key holiday items so they feel like bargains, such as ornaments starting at $1, candles starting at $5 and throw blankets starting at $10, Gomez said.

Target is also trying to stand out with more products that customers can’t find elsewhere. It has 20,000 new items in its holiday assortment, more than double the year-ago holiday season, with over half of those only available at Target, Gomez said. In a bid to bring in customers beyond merchandise, it teamed up with Starbucks for an exclusive drink that shoppers can’t find elsewhere, a Frozen Peppermint Hot Chocolate frappuccino.

Target tends to see stronger sales during holidays and seasonal changes. Yet Gomez said even during those moments this year, customers have been selective. At Halloween, for example, Gomez said shoppers made “trade offs,” as the company saw stronger candy sales and weaker decor sales.

Gomez said he expects that pattern to hold during the holiday season.

“We think the consumer will prioritize what goes under the tree versus what goes on the tree,” he said.

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Walmart Doug McMillon stock performance vs. Target, Amazon, Costco

admin — Sat, 15 Nov 2025 23:09:34 +0000

Walmart logo is seen near the store in Austin, United States on Oct. 23, 2025.

Jakub Porzycki | Nurphoto | Getty Images

When incoming Walmart CEO John Furner steps into the retailer’s top role, he will try to follow up a period of dramatic share growth that many of Walmart’s rivals have failed to match.

Walmart’s stock has more than quadrupled since outgoing CEO Doug McMillon began in the role in February 2014. Across nine of the 12 calendar years when McMillon has been Walmart’s leader, the company posted positive stock returns.

Among Walmart’s main rivals in the retail and grocery business, only Amazon and Costco have had better stock returns since McMillon took the job. Meanwhile, Walmart’s stock has outperformed those of competitors like Target, Dollar General, Dollar Tree, Kroger and Albertsons.

McMillon will officially step down at the end of January, but will stay on as executive chairman and advisor. While Furner will face a challenge in replicating the company’s performance under his predecessor, he has been a key catalyst for the company’s success as CEO of its largest sector, Walmart’s U.S. business.

Along with huge gains on Wall Street, McMillon oversaw a significant period of growth for the nation’s largest grocer, which included sharp sales increases, wage hikes for hourly workers and transformation of the nation’s low-price leader into a major e-commerce player. He also steered the retailer through the tumult of a global pandemic, historic levels of inflation and higher tariffs.

Sales during McMillon’s first three years in the role were roughly flat — with revenues of $486 billion, $482 billion and $485 billion in the fiscal years ending January 2015, 2016 and 2017, respectively.

Yet those years were followed by steady growth, and those gains have accelerated since 2021, after the Covid pandemic pushed more people to shop online and inflation nudged even wealthier shoppers to seek value. Walmart posted annual revenue of about $681 billion in the fiscal year ended earlier this year, an approximately 40% jump from the company’s annual revenue the first year of McMillon’s tenure.

This year, Walmart is on track to post annual revenues of over $700 billion for the first time ever. Ironically, however, it is also expected to lose its crown as the largest retailer by annual revenue to its biggest e-commerce rival, Amazon.

Earlier this year, Amazon leapfrogged Walmart in quarterly sales for the first time. Compared to Walmart, it has a different mix to its business because of its massive cloud computing, advertising and seller services businesses.

How Walmart’s stock compares to its rivals

Stock gains by Amazon have outpaced Walmart’s during the years of McMillon’s tenure, with 1,225% share gains by the tech giant compared to a 312% increase by Walmart.

However, Walmart’s performance on Wall Street has far surpassed big-box retail competitor Target‘s across McMillon’s time as CEO. Shares of Target are up about 60% since February 2014, compared to Walmart’s 312% gains.

During the years of the Covid pandemic, Target’s steep share gains surpassed those of Walmart. Yet the Minneapolis-based cheap chic retailer’s annual sales have been roughly stagnant for about four years and dragged down its stock performance.

Like Walmart, Target is preparing for a leadership change in February. Last month, Target said Michael Fiddelke, its chief operating officer and former CFO, would succeed longtime CEO Brian Cornell.

Costco also stands out as a competitor that has posted steeper share gains than Walmart. Shares of the warehouse club retailer, which competes with both Walmart stores and those of its warehouse chain, Sam’s Club, have shot up by more than 700% during the years of McMillon’s tenure.

Walmart’s supermarket competitors — Kroger and Albertsons, in particular — have lagged behind that. Shares of Kroger, which includes about two dozen grocery chains including Fred Meyer and Ralphs, climbed 265% during McMillon’s tenure. Shares of Albertsons, which includes Safeway, Tom Thumb and other grocery chains, rose by only 16%.

Albertsons went public in 2020, which gave it less time for stock gains. For about two of those years, from roughly 2022 to 2024, Kroger and Albertsons also sought to merge their two companies into a larger grocer that could better compete with Walmart, Costco, Amazon and others. The deal was ultimately blocked by a U.S. judge, after the Federal Trade Commission sued to stop the merger.

Dollar stores also fell short of Walmart’s stock performance while McMillon was CEO. Dollar Tree and Dollar General, who compete with Walmart in offering groceries and other items at low prices, posted 104% and 85% share gains, respectively, compared to Walmart’s 312% increase.

Notably, both dollar store banners’ stocks outperformed Walmart’s during some of those years, yet have been struggling more recently.

Walmart’s stock was about flat Friday following the retirement announcement, and shares have climbed about 13% this year.

— CNBC’s Tom Rotunno contributed to this report.

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