Target Down! Is This My Cue To Buy The Company?

DEI lemma: Did Target Just Unfriend Everyone?

Alright people gather 'round. Seems like Target's decided to backpedal faster than Rhodey in a Mark I suit after a systems malfunction – and trust me that's saying something. They’re rolling back their Diversity Equity and Inclusion initiatives and the backlash is hitting harder than one of my repulsor blasts. Nationwide boycotts? Check. Foot traffic plummeting for eleven weeks straight? Double check. I mean I get it trying to please everyone is like trying to herd cats while wearing vibranium boots. But alienating a chunk of your customer base? That’s not exactly 'genius billionaire playboy philanthropist' level thinking is it? JARVIS remind me to send them a consulting fee invoice. (Just kidding... mostly.)

Amazon's Got a Bow and Arrow Target's Got…What Exactly?

And as if DEI drama wasn’t enough Target's also playing dodgeball with Amazon and other 'nimble competitors.' Nimble? Please Amazon's practically teleporting products into people's homes while Target’s still trying to figure out where they stored the inventory. Speaking of which between inflation and those lovely tariffs consumer spending is doing the limbo. And guess who's feeling the squeeze more than Walmart or Costco? Yup Target. It's like watching a slow motion car crash except the car is a shopping cart and the crash is their stock price.

Self Inflicted Wounds: When Your Own Inventory Betrays You

Turns out Target’s not just getting punched by external forces; they're also kind of punching themselves in the face. Apparently they were swimming in excess inventory after COVID forcing them to discount heavily. Then BAM! The DEI boycotts hit. As Joe Feldman from Telsey Advisory Group put it they’re getting hit with DEI after they were starting to get back on track. It’s like watching a supervillain trip over their own cape. “Sometimes you gotta run before you can walk” Iron Man

Same Spending Different Stores: A Tale of Two Wallets

Here’s the kicker: Target’s customers are spending the same amount of money as before but they're spreading the love to Walmart and Costco. Indagari’s data doesn’t lie. Neil Saunders from GlobalData points to operational snafus like locking up products (seriously are they guarding gold bars or toothpaste?) a lack of fresh partnerships and staff shortages. Seriously? Staff shortages? Did they forget to activate the 'hire more humans' protocol? JARVIS remind me to patent that. It’s these little things that are chipping away at Target's market share. Between 2021 and 2024 Target lost 0.18% of market share while Amazon Costco and Walmart gained 0.07% 0.15% and 0.75% respectively according to GlobalData.

Affection vs. Action: Love Ain't Enough to Fill a Shopping Cart

Saunders says there's still 'a lot of affection' for Target. Which is great I guess. But affection doesn’t pay the bills does it? Consumers are spreading their spending around like confetti at a Stark Industries party. They’re diverting some of that spending from Target to other retailers. In the immortal words of yours truly 'If you're nothing without the suit then you shouldn't have it.' And if Target is nothing without consumer loyalty…well you get the picture.

Staying Nimble? More Like Staying Nervous!

Target declined an interview with CNBC Digital but offered a statement about staying nimble and generating profitable growth. They admitted to an 'unexpectedly high level of variability throughout the year.' Variability? That’s one way to put it. Sounds like they're trying to 'control what they can control,' but I’m not sure that's enough. I mean even I have trouble controlling everything and I'm Iron Man! JARVIS remind me to add 'rescue Target from retail oblivion' to my to do list. (After I finish upgrading the arc reactor of course.)