US retailer Target has lost $10 billion in market valuation in 10 days over controversy around its Pride-themed clothing for children. The department store chain has been facing boycott calls from people across the US after some videos claimed to show onesies and other dresses meant for toddlers and other children.
How much money has Target lost from boycott?
The nearly 14% drop in value for the blue chip stock roughly translates to a $10.1 billion loss in valuation to just $64.2 billion for Target, which has nearly 2,000 stores nationwide. The plummet stands as the retailer’s lowest stock price in nearly three years.
What country did target fail in?
Target Canada: Target’s entry into the Canadian market in 2013 was its first foray in international expansion.
What is Target’s biggest weakness?
Weaknesses
- Limited international presence: Target’s primary focus has been the U.S. market, and it has a limited international presence compared to some of its competitors. This lack of geographical diversification can make the company more susceptible to fluctuations in the U.S. economy and limit its growth potential.
- Competition: Target faces intense competition from brick-and-mortar retailers like Walmart and online retailers like Amazon. Competing with these giants on price, product selection, and convenience can be challenging and may erode Target’s market share.
- Dependence on third-party suppliers: Target relies on third-party suppliers and manufacturers to produce its products, particularly for its private-label brands. Any disruption in these relationships, such as supply chain disruptions, labor disputes, or quality control issues, could negatively impact Target’s product availability and reputation.
- Data security and privacy concerns: As a large retailer handling vast amounts of customer data, Target is vulnerable to data breaches and privacy concerns. The company experienced a significant data breach in 2013, affecting millions of customers. Although Target has since invested in enhancing its data security measures, it must remain vigilant to protect its reputation and customer trust.
- Challenges in maintaining low prices: As a value-based retailer, Target must consistently offer low prices to attract and retain customers. However, this can lead to lower profit margins and requires ongoing efforts to optimize the supply chain and reduce operational costs.
- Talent retention and employee satisfaction: In the retail industry, employee turnover can be high, and maintaining a satisfied workforce can be challenging. Target must invest in employee training, development, and fair compensation to maintain a productive and committed workforce.
What caused Target to fail?
Essentially, the over-investment was costly and crippling to the operations. Target tried to do way too much too soon. With all their money spent on fixing stores and hiring people, Target stores were unable to deliver the same experience they were delivering in the US.