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As Walmart Thrives, Target's New CEO Faces Challenge Amidst Three-Year Decline

As Walmart Thrives, Target's New CEO Faces Challenge Amidst Three-Year Decline

Bitget-RWA2025/11/19 15:14
By:Bitget-RWA

- Target's Q3 net income fell 19% amid 12-quarter sales decline, citing weak demand, markdowns, and external disruptions like government shutdowns. - New CEO Fiddelke announced a $5B 2026 investment plan to modernize stores, improve product variety, and cut 1,800 corporate jobs as part of turnaround efforts. - Walmart's 4% Q3 sales growth and 12.6% 2025 stock gain contrast with Target's 35% stock drop, highlighting grocery dominance and e-commerce advantages. - Analysts question Target's ability to retain

Target Corp. (TGT) posted a 19% drop in net earnings for its third quarter, highlighting continued difficulties in overcoming a sales decline that has lasted for 12 straight quarters. The retailer, which

, blamed the downturn on weak consumer demand, increased markdowns, and outside pressures such as the government shutdown and suspended SNAP benefits. Net sales decreased by 1.5% to $25.3 billion, while comparable sales .

Michael Fiddelke, who will take over as CEO in February,

for 2026 aimed at updating stores, improving merchandise selection, and strengthening digital operations. "Our top priority is returning to growth," he stated, regarding cluttered stores, limited assortment, and lackluster service. The company also revealed price reductions on 3,000 everyday products and introduced more affordable holiday items, including $1 ornaments and $10 throws.

As Walmart Thrives, Target's New CEO Faces Challenge Amidst Three-Year Decline image 0
Target’s difficulties stand in stark contrast to Inc.'s results. Walmart, which , is projected to achieve a 4% rise in sales to $177.1 billion and a 5% increase in earnings per share. to its leading position in groceries, ability to absorb tariffs, and robust e-commerce platform, which have helped it weather inflation and economic headwinds. In contrast, Target’s shares have , lagging behind Walmart’s 12.6% advance.

Fiddelke admitted there is significant pressure to reshape Target’s brand in a fiercely competitive market. "Shoppers want great value, but what truly sets

apart is our ability to combine value with outstanding products," he commented. The company and is streamlining its business, including eliminating 1,800 corporate positions—its largest round of layoffs in ten years.

. "Target is falling behind," said Louis Navellier of Navellier & Associates, pointing out the retailer’s difficulty in keeping middle-income customers, who are increasingly shopping at Walmart for basic needs. described Fiddelke’s promotion as an “overlooked catalyst,” but stressed the necessity for better inventory control and pricing tactics.

With the holiday shopping season approaching, Target is under increased scrutiny. Although it has

for store upgrades and technology improvements, Fiddelke conceded that the route to renewed growth is still uncertain. "There’s more to be done, but we are heading in the right direction," he remarked. As Walmart and Amazon continue to expand their market dominance, Target’s success in executing its turnaround plan will be crucial for restoring investor trust.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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