Target (TGT) has had a rough time attracting shoppers into its stores all year.
After facing a boycott from consumers last year for marketing its pride collection to children, Target’s sales have tumbled for several financial quarters, especially during a time when inflation and higher costs of living has been putting extra strain on consumers’ wallets.
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Target recently faced a small increase in sales. In its third-quarter earnings report for 2024, its comparable sales only rose by a mild 0.3% year-over-year. However, the amount of money that customers spent per purchase shrunk by 2%, compared to the same time period last year.
Related: Target flags startling customer behavior ahead of holidays
Amid weak sales, the holiday season is the perfect opportunity for Target to make a strong recovery. Especially since a recent survey from the National Retail Federation predicts that consumer spending on gifts, food and decorations during the holidays this year will reach a new record.
Target announces its Christmas hours
In preparation for the bustling season, Target recently announced that it has opened additional checkout lanes in stores to boost the ease and speed of customer transactions. It is running extended holiday hours until Dec. 23, allowing its customers to shop in stores from 7 a.m. to midnight.
For customers who are planning to do last-minute shopping, Target will open its doors on Dec. 24, Christmas Eve, at 7 a.m. and will close at 8 p.m.
For Target Circle members, same-day delivery will still be available for orders placed by 3 p.m. on Christmas Eve.
In addition, Drive Up and Order Pickup orders that are placed by 6 p.m. on Christmas Eve will also be available the same day.
Even though Target will be closed on Dec. 25, Christmas Day, customers who miss the deadline to purchase gifts before Christmas will still have the opportunity to shop on Target’s website and app 24/7 and will be able to order pickup or delivery after the holiday.
Target has low expectations for holiday sales
Despite preparing for a boost in holiday purchases in stores, Target is expecting its comparable sales during the fourth quarter this year to remain “flat.” Its grim prediction comes after it lowered prices on over 2,000 items that are in categories such as food and beverages, everyday essentials, and holiday gifts/prep in October.
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It also recently rolled out a plethora of deals and discounts in stores in an effort to attract customers. For example, Target is offering customers the opportunity to save $10 with Target Circle if they spend $50 on toys, and if they spend $100 on toys, they save $25.
Related: Target slashes prices ahead of holiday shopping surge
The retailer is also launching weeklong deals every Sunday.
During an earnings call last month, Target flagged that its customers’ budgets continue to remain stretched due to inflation, and it’s negatively impacting business. Target Chief Financial Officer Jim Lee said during the call that the company’s holiday sales prediction is partially due to this current trend.
“We're focused on planning the business cautiously based on the volatility we've encountered so far this year,” said Lee. “Our expectations also reflect some unique attributes of this year's calendar including the loss of five shopping days between Thanksgiving and Christmas and the shift in this year's fiscal calendar after last year's 53rd week.”
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