Target's Early-Year Sales Drop, Signs of Recovery Emerge

Target has reported a 3.1% decline in quarterly revenue to $24.53 billion, slightly better than Wall Street expectations, attributed to higher prices impacting shopper spending. The Minneapolis-based retailer's net income of $942 million or $2.03 per share fell short of analysts' projections and was below last year's $950 million. Despite a 3.7% drop in comparable sales, the company anticipates returning to quarterly sales growth in the next quarter and expects a full-year comparable sales increase of up to 2%.

To address the decline in sales, Target is implementing strategies such as cutting prices on consumer basics to attract deal-seeking customers and enhancing the shopping experience to compete with rivals Walmart and Amazon. The retailer has introduced a new paid membership program, Target Circle 360, offering unlimited free same-day delivery for orders over $35 and free two-day shipping for all orders. Additionally, Target plans to update existing locations and build over 300 new stores over the next decade.