Target's Sales Are Off the Mark

Add Target TGT to the list of retailers struggling this holiday season.

The Minneapolis-based company reported Monday that its sales for last week and for the month to date were coming in "well below plan." Target had forecast that its same-store sales, which track revenue from stores open more than one year, would grow by 3% to 5%.

"Our comparable-store sale plan for December reflects a strong December last year and one more pre-Christmas shopping day this year," the company said in a conference call.

Target's disappointing report follows those of Wal-Mart WMT and Federated FD, both of which said comparable-store sales were coming in at the low end of their respective forecasts. Meanwhile, ShopperTrak RCT on Monday projected that retail sales would fall by 5.4% this month, compared with last December.

Comparable-store sales were disappointing both for Target Stores in particular and for the entire corporation, Target said. In addition to its namesake stores, the corporation also owns the Mervyn's and Marshall Field's chains.

In the first two weeks of December, Target has seen its strongest sales in toys, pharmaceuticals, entertainment products and perishable goods, the company said. In contrast, sporting goods and men's and women's apparel have been poor sellers.

Target stores in the Northeast and the Mid-Atlantic regions had the strongest sales, the company said.