Retailer Target is under pressure on several fronts: He faces a decline After backwards its initiatives of diversity, equity and inclusion; Is to fight more rigid competition from agile competitors as Amazon; And the company has a higher exposure to a drop in consumer expenditure in the midst of inflation and the volatility of tariffs than competitors as Walmart And Costco.
Target's decision to reduce Dei keys programs launched boycotts nationally and a drop in pedestrian traffic for 11 consecutive weeks between January 27 and April 13, according to.
However, business challenges go further than prices and politics. Experts say that many of his problems are self-inflicted. Excess inventorya personnel deficit and Locked inventory have all contributed to stable income and a stock market course.
“Target has had several missteps from Covid peak where their inventory post was too high,” said Joe Feldman, principal director of Telsey Advisory Group. “They had to remove strongly to clean through a large part of the inventory. Things were starting to get back on the right track. Then they are struck with Dei,” he said, referring to the boycotts.
While Target customers spent relatively the same amount per quarter in 2025 as in 2021, they increased their purchases from Walmart and Costco competitors, according to Indagari data.
Neil Saunders, managing director of GlobalData, said that operational decisions such as product locks, the lack of new and new partnerships with brands and designers, and that staff shortages have led the objective to yield the market share. Between 2021 and 2024, Target lost 0.18% of the market share, while Amazon, Costco and Walmart gained 0.07%, 0.15% and 0.75% respectively, according to Globaldata.
“There is still a lot of affection for Target,” said Saunders. “But consumers permanently distribute their expenses more finely. They definitively divert some of these Target expenses from other retailers.”
Target refused the Digital Interview CNBC request, but said in a statement that the company “Entered in 2024 with a commitment to remain agile and generate profitable growth, “ But that “These results came with an unexpected and high level of variability throughout the year.” He added: “By controlling what we can control, listening carefully to consumers and remaining focused on what differentiates the target, we are convinced that we can continue to create value for our stakeholders”, “
