MINNEAPOLIS–Target is trumping the “pay less” part of its “pay less, expect more” mantra for the holiday season as it posted an earnings declines on a sales gain for the third quarter ended Nov. 3, executives said during a conference call.
Net income fell to $369 million from $483 million from the year-ago quarter.
In the retail sales segment, sales grew 1.7 percent to $14.6 billion. Comparable-store sales fell 3.3 percent.
“We recognize that it is essential for us to communicate our value proposition … on everyday basics and fashion items,” Gregg Steinhafel, chief executive officer, said during the call.
Target will play up value for the holiday season by highlighting low-price-point-goods endcap displays in store. It is also touting six low-priced items daily during the season with the “deal of the day” on Target.com.
Steinhafel said Target, Costco and Wal-Mart are poised to be “the winners” this holiday season, but added that other merchants will “not remain intact.”
While Target does not delight in other merchants’ failures, he said, “a smaller competitive set” will make for a healthier retail landscape.