This Retailer Has Been a Top-Performing Stock

TL;DR

Target's drastic changes led to 31% stock increase; high foot traffic, improved guest experience.

Transcript

Vincent Shen: I wanted to bring you on the show today to talk Target. Thank you for bringing the company back on my radar, by the way! Frankly, if you'd have told me that at the beginning of 2018, Target would end up being in the top 50 best-performing stocks in the S&P 500 this year, I don't think I would have believed you, frankly. But here we ar... Read More

Key Insights

• ❓ Target's stock performance in 2018 is exceptional, outperforming many S&P 500 stocks.
• 🏪 The company's turnaround was driven by bold changes like store remodels and updated merchandise.
• ✋ High foot traffic growth and comparable sales numbers indicate a successful transformation.
• 🥺 Target's focus on supply chain improvements and customer experience led to better service and fewer out-of-stock items.
• 🐕‍🦺 Management's commitment to extensive training for associates reflects a dedication to customer satisfaction and service excellence.
• 🚚 Target's digital growth and expansion of delivery options align with changing consumer preferences.
• 🥺 The company's investments in various initiatives have paid off, leading to improved financial performance.

Questions & Answers

Q: What were some of the major changes Target made that led to its turnaround?

Target implemented significant changes like store remodels, updated merchandise offerings, improved delivery options, and enhanced digital growth to boost its performance.

Q: How did Target's foot traffic and comparable sales growth perform in recent quarters?

Target saw a 6.4% increase in foot traffic, the highest since 2008, and a 6.5% year-over-year growth in comparable sales, the highest since 2005, fueled by physical stores and e-commerce.

Q: What steps did Target take on the supply chain side to improve the guest experience?

Target focused on improving digital fulfillment, inventory handling, shelf-stocking processes, and employee training to enhance the customer experience, reduce out-of-stock items, and offer better service.

Q: How does Target's performance compare to its competitors like Walmart and Amazon?

Target adopted similar strategies to Walmart, offering online ordering, in-store pickup, and multiple delivery options, focusing on customer convenience and experience in the face of strong competition from Amazon.

Summary & Key Takeaways

• Target's stock is up 31% in 2018, a top-performing S&P 500 stock.

• The company implemented drastic changes like store remodels, digital growth, and improved supply chain.

• Impressive foot traffic growth of 6.4% and highest comps boost since 2005.