Target is facing a traffic issue, says SW Retail's Stacey Widlitz

Market Share & Competition - Target is losing market share in more than half of its categories [2] - Walmart's comps have been up mid-single digits while Target's have been down 2-3%, creating a 7-8 percentage point spread [4] - Walmart is gaining market share, particularly from higher-income consumers, who are typically Target's customers [7] - Amazon is also expected to increase its market share as it expands its fresh food and same-day delivery services [7] - Target is not picking up the market share that Kohl's is losing [8][9] Operational Challenges - Target's stores are reportedly in disarray with inventory and labor shortages due to fulfilling online orders from stores [3][9] - Traffic is down at Target stores, potentially due to execution issues and product unavailability [5][6] - Labor shortages are impacting store operations as employees are reallocated to fulfill online orders [3][9] Financial Performance & Strategy - Same-day delivery has been a positive factor, with growth exceeding 24%, partially offsetting the decline in overall comps [10] - Target is using promotions to move merchandise, unlike many retailers who are maintaining full prices [11][12] - Target faces a difficult situation with tariffs, needing to decide whether to raise prices or sacrifice margins [12][13] Leadership & Future Outlook - There is surprise that an external candidate was not brought in for a leadership role [1][15] - Concerns exist about Target's ability to fix the issues that have been apparent for the past two years [3][15]