Fmr. Target Vice Chairman Storch: 'Target has a lot to do to get back to the old days'

Consumer Spending & Retail Sales - The consumer is essentially strong, with year-over-year sales increase of 5% [3] - Retail sales from a credit card portfolio are up 6% [3] - Anything north of 4% is a win for Christmas sales, with expectations around 5% [3][4] - Wealthier consumers are driving sales due to the booming stock market, while lower-income consumers are still increasing purchases, but at a slower rate [4][5] Company Performance & Strategy - Walmart is performing well and capturing massive market share [7][8][15] - Costco is capturing massive market share as a great fundamental retailer [8][9] - TJX is doing everything right as a retailer [9] - Amazon's retail unit is performing well in e-commerce, though overshadowed by its cloud-based computing unit [10] - Target is off strategy and not executing well, particularly in grocery, where they deemphasized it, unlike Walmart [11][12] Target's Challenges - Target's grocery strategy is backwards, focusing on convenience instead of driving frequency for general merchandise purchases [16][17] - Target stores have issues with long lines, out-of-stock items, and a lack of emphasis on value [12][17] - Target stores no longer differentiate themselves from Walmart in terms of appearance [17][18]