467 replies to this topic

[jonny]

Those supply chain and logistical failures sounds epic! 

 

Two other major failures were they telegraphed where their stores were going to open years in advance so their competitors had an easy time getting ready for the competition. They also purchased all those second rate Zeller's locations which were generally at crappier malls in less desirable locations (i.e. locally I think most would agree that Uptown is a better location than Tillicum or Hillside). 

 

Oh well. Locally I think I'll be quite happy with a Lowe's and a new C-Tire. 

[Rob Randall]

There was a rumour Walmart and Sears was sabotaging Target's supply chain by buy up all available product but it sounds like Target didn't need any help destroying themselves.

That the whole operation started as a real estate deal rather than a solid retailing operation was fatal.

[johnk]

I dont think they wanted to be in upscale malls because that's not their customer base. Our impression on our two visits, Hillside and Tillicum, was Zeller's with a dab of paint. They did retain Zeller's tradition of sending out flyers advertising all the bargains not on the shelves.

[Rob Randall]

That was mentioned in the article. Virtually everything on the front page of a flyer was not stocked and executives were furious.

Someone I know said that article should be required reading in business school.

Sounds like the employees (most of them) were heroes tryIng to salvage this management fiasco. The lesson here is have faith in your employees, and less faith in software and the salesmen that flog it.

[bluefox]

There was a rumour Walmart and Sears was sabotaging Target's supply chain by buy up all available product but it sounds like Target didn't need any help destroying themselves.

That the whole operation started as a real estate deal rather than a solid retailing operation was fatal.

 

Maybe Walmart, but Sears doesn't have the cash to be going around trying to keep out a competitor by buying up inventory.

[VicHockeyFan]

Maybe Walmart, but Sears doesn't have the cash to be going around trying to keep out a competitor by buying up inventory.

 

I bet Sears still has some access to pretty deep lines of credit.  Especially if they show they are using it buying up non-perishable items that do not become risky to stock or obsolete (everyday products like cleaning supplies, socks, picture frames and housewares, that kind of thing etc.).  Some legacy retailers have a lot of good will built up with bankers.

[Bingo]

Off target!

 

Target missed the bullseye badly during the holidays, reporting earnings that were below forecasts.

And the company's outlook for this year was much worse than expected, sending the stock down 13% in early trading. Shares are down 20% this year. 

The terrible numbers from Target (TGT) are just another sign of how tough it is for traditional retailers to compete against the online juggernaut that is Amazon (AMZN, Tech30).

http://money.cnn.com...ings/index.html

 

[Matt R.]

I just ordered a six pack of green painters tape off Amazon tonight. It will be at my shop by Thursday morning. Sometimes we even see next day delivery. To salt spring. From Ontario. It's amazing.

Matt.