Target Stocks Decline Due to Slowdown in Black Friday Traffic
On Monday, Target Corporation's (NYSE:TGT) shares dropped by 2.2%. Analysts reported a slowdown in customer traffic on Black Friday, traditionally one of the busiest shopping days of the year. KeyBanc highlighted low traffic at Target, noting that there was an initial surge in the first hour due to the launch of Taylor Swift's Eras Tour book and vinyl, which sold out quickly. However, traffic for the rest of the day resembled a "normal day."
Deutsche Bank observed moderate traffic levels at Target stores, attributing this stagnant activity to inconsistent stock levels and a lack of organization. These factors may have contributed to less shopper participation than expected during a significant sales event for the retailer.
Bank of America (BofA) provided a more detailed report on Target's promotional activities leading up to Black Friday. The retailer relaunched several promotions, including the Target Circle Week from October 6 to October 12, the “Deal of the Day” program running from November 1 to December 24, and weekly offers starting every Sunday from November 3. Target also launched its "Early Black Friday" promotions from November 7 to November 9. On Black Friday, Target stores opened at 6 AM after remaining closed on Thanksgiving Day. Special three-day Black Friday weekend deals were offered from November 28 to November 30, and Target noted an increase in the number of deals compared to last year.
Despite these efforts, BofA noted that most stores they visited on Friday had healthy traffic levels, with the toy section seeing the strongest activity, while electronics were less popular. Additionally, several stores experienced queues before opening, with customers eager to obtain Taylor Swift exclusive products.
The overall picture drawn by analysts indicates that Target's performance on Black Friday was mixed, with specific promotions and exclusive product launches attracting crowds, but overall shopper participation falling short of expectations.