Target on target
Inside Retail commented on Guy Russo’s progress in fixing Target. The decline in earnings evident over the last several years has been arrested and sales have started to grow in several key categories. The aim is to create a smaller and more profitable Target. We think that this is a robust, pragmatic and brave strategy (for a publicly listed company) that will help to secure Target’s future. Target aims to reduce its real estate footprint by 20%. We also like Target’s strategy to boost new fashion, better differentiate products, and most importantly – to adopt the Digital Path to Purchase approach – “increasing exposure to online” in the words of Mr. Russo.