Target Sitting out Black Friday 2012?
Can you imagine a Black Friday without Target? That may be the case this year according to comments made by John Mulligan, CFO of Target, at this year's Goldman Sachs' Global Retailing Conference:
"[We're] not interested in driving sales for the sake of sales... you might see us lag competitors again as it relates to [same-store] sales increases."
Rather than continually undercutting their competitors' holiday sales prices, Mulligan says Target would rather concentrate their efforts on a new cobranded apparel line with Neiman Marcus (which features items ranging from $7.99 to $499.99) instead of "[focusing] so much on the lowest price of a 44-inch television."
While we're all for transparency with your customers, Target's CFO has essentially instructed buyers to look elsewhere if they are looking for bargains this holiday season. There may be plenty of shoppers who are interested in the new apparel line; we just don't know how many would wait outside for hours in the cold like they would for a 42" television door buster.
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