Retailer Target pins missed financial goals on lackluster Apple device sales

Posted:
in General Discussion edited August 2016
Target's executives revealed in an earnings conference call that Apple sales at their stores dropped 20 percent, calling it one of the major reasons for missing earnings guidance, and forcing a revision for the next quarter as well.




Target CEO Brian Cornell told analysts on a conference call about the significant drop in Apple sales by volume. The lack of Apple sales was blamed for a double-digit sales decline in the company's overall electronics business.

Cornell also stated that Target was working with Apple to improve performance in the stores, but no specifics as to what the future plans are were given.

Target Corporation reported a second quarter sales decrease of 1.1 percent and earnings per share from continuing operations of $1.07, a decrease of 11.6 percent from the year-ago quarter. Other factors attributed to the Target losses were the same challenging retail market that Apple notes in its own earnings reports, a drop in grocery sales, and poor consumer response to the Target Pharmacy migration to CVS ownership.

Expecting a continued slide in both the third and fourth quarters of 2016, Target now expects comparable sales to fall in a range of no growth or a decrease of two percent.

Target started carrying the Apple iPod, iPad, and iPhone since retail sales programs began for the respective products. The retailer picked up sales for the Apple Watch in October 2015, following an April 2015 initial release date.
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Comments

  • Reply 1 of 53
    nolamacguynolamacguy Posts: 4,758member
    what nonsense. target is a household goods store, you get clothes, cleaning supplies, maybe some food, and household goods. they're not an electronics store and counting on it to be would be folly. 

    now take NFC payments like Apple Pay already. 
    zroger73Deelronlondorcalimazda 3smike1braderunnermelodyof1974bdkennedy1002sockrolid
  • Reply 2 of 53
    zroger73zroger73 Posts: 722member
    Oh, brother. Target is one of the last places people go for Apple devices. I think people are growing tired of that nauseating popcorn smell! While I don't mind my local Target, I find it largely irrelevant and always have. There are other stores with lower prices and/or a better selection.
    calipotatoleeksouphorvaticlatifbpDeelronjony0hodarwilliamlondondjkfisher
  • Reply 3 of 53
    Right. It has nothing to do with the endless horrible press they got for trying a Social Justice Warrior experiment on their customer base.

    lol.
    horvatictoranagahodardjkfishermobird
  • Reply 4 of 53
    Target's electronics dept is usually empty, in my experience..no sales clerk..nothing. Besides, why go to Target when Sam's Club sells the Apple products for MUCH less.
    supadav03horvaticlatifbphodardjkfisherbig
  • Reply 5 of 53
    Right. It has nothing to do with the endless horrible press they got for trying a Social Justice Warrior experiment on their customer base.

    lol.
    Agreed.
    hodarttollertondjkfishermobirdallmypeoplehamiltonrrwatch
  • Reply 6 of 53
    These folks sustain one of the biggest consumer data breaches in American history, then claim to be an electronics retailer.

    Give me a break.
    braderunnersockrolidhorvaticlostkiwilatifbpDeelronjony0hodarlollivermobird
  • Reply 7 of 53
    calicali Posts: 3,495member
    So is this what businesses do now? Miss earnings and blame Apple?

    Imagine if Apple went out of business?
    damonfhorvaticlatifbpDeelronwilliamlondonbig
  • Reply 8 of 53
    robin huberrobin huber Posts: 3,288member
    Wow, what a crock. Would like to see the complete numbers that justify such a specious claim. Weak. 
    latifbp
  • Reply 9 of 53
    Kind of like telling your mom and dad that you would have done better on your report card if they had paid for faster internet service
    mazda 3seightzerodamonfDeelronpscooter63williamlondonlolliverhamiltonrrwatchtopper24hoursRayz2016
  • Reply 10 of 53
    mazda 3smazda 3s Posts: 1,577member
    I love me some Target (Cartwheel, RedCard, RedPerks), but that is a bulls*** explanation for missed earnings.
  • Reply 11 of 53
    mac_128mac_128 Posts: 3,449member
    zroger73 said:
    Oh, brother. Target is one of the last places people go for Apple devices. I think people are growing tired of that nauseating popcorn smell! While I don't mind my local Target, I find it largely irrelevant and always have. There are other stores with lower prices and/or a better selection.
    Then why were they so eager to get the Watch into Target?
  • Reply 12 of 53

    Cornell also stated that Target was working with Apple to improve performance in the stores, but no specifics as to what the future plans are were given.


    Maybe accept ApplePay?
    genovelledamonflatifbpDeelronlolliverhamiltonrrwatchbig
  • Reply 13 of 53
    mazda 3smazda 3s Posts: 1,577member

    Cornell also stated that Target was working with Apple to improve performance in the stores, but no specifics as to what the future plans are were given.


    Maybe accept ApplePay?
    They have it in their Target app, but not in-store. I don't even use it in the app because -- surprise surprise -- my Target RedCard isn't supported, so why the hell would I forgo my 5% discount.
    mrboba1
  • Reply 14 of 53
    e1618978e1618978 Posts: 6,075member
    RodB2526 said:
    Just a matter of time before the idiots that run this company start closing stores. 10 years they will be history and all because these stupid bastards have an affection for transgenders
    Sounds like I need to start shopping at Target.  "Affection for transgenders" is pretty common for rich people, it is only the people with no money or social status that generally hate them.  It makes sense for businesses to have affection for transgenders.
    mazda 3smontrosemacsnolamacguyDeelronronnwilliamlondonRayz2016
  • Reply 15 of 53
    These folks sustain one of the biggest consumer data breaches in American history, then claim to be an electronics retailer.

    Give me a break.
    Then...they won't accept Apple Pay, one of the most secure payment methods available. 
    lostkiwilolliverbaconstangbig
  • Reply 16 of 53
    NY1822NY1822 Posts: 601member
    The miss on Samsung sales were already baked in I guess 
    jmey267lostkiwijony0lolliverdysamorianostrathomasbigmrboba1
  • Reply 17 of 53
    eightzeroeightzero Posts: 2,487member
    This is actually pretty interesting. Retail like Target is doomed. I can save 10% right off the top on just sales tax by shopping online. Jet figured this out, much of their stuff shipped from other states. Now that Wal-Mart has bought them, I expect that to change.

    In-store retail for electronics is even more ripe for this. Come to a nearby retail store to essentially try things out, then go buy it at a significant discount online. Free ship.

    The urban legend is likely true: shopped goes to best buy to buy an HDTV. Picks out the one he likes, hit his favorite app to check prices. Oddly enough, the cheapest one was Best Buy, $100 less than the price on the shelf he was standing front of. Click here to purchase, deliver to the store, in stock, on loading dock in 10 minutes. 


  • Reply 18 of 53
    Are you kidding me? I just love how any market goes down and somehow is Tim Cook's and Apple's fault.
    jmey267latifbpDeelronwilliamlondon
  • Reply 19 of 53
    hmlongcohmlongco Posts: 181member
    Target's sales are down not because of Apple, but because Target is continually screwing with their customers. 

    For one thing, they keep dropping SKUs. At least once or twice a month I find that they've stopped carrying an item or brand I used to buy there, and it's getting to the point that their selection sucks. In fact, in many areas of the store they've even started spacing items further apart in order to hide the fact that they're carrying less. Are they foolish enough to think their customers don't notice these things?

    Also, I'm pretty damn tired of the way they're continually moving items and even entire sections around in order to make their customers go searching elsewhere for them. Bringing CVS into their stores sucks too.

    And speaking of Apple products, I tried doing an iPhone pre-order there once.... only to get a call the following FEBRUARY that the device had finally arrived and did I still want it?

    Hy-Vee may cost just a bit more, but they don't mess with me the way Target does, and as such Hy-Vee and Costco are getting more and more of my dollars, and all despite the fact I lack practically five houses away from a SuperTarget.
    Deelron
  • Reply 20 of 53
    512ke512ke Posts: 782member
    RodB2526 said:
    Just a matter of time before the idiots that run this company start closing stores. 10 years they will be history and all because these stupid bastards have an affection for transgenders
    Target's shortfall in revenue has nothing to do with their adding bathrooms and everything to do with their lower priced competition, Amazon and Walmart primarily. 
    edited August 2016 nolamacguyronndewmehamiltonrrwatchdysamoria
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