Target Will Close Its Stores on Thanksgiving

Target encourages customers to 'kick back, relax and enjoy a long nap after you finish that last piece of Thanksgiving turkey.'
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Retail titan Target  (TGT) - Get Report announced Monday that its stores will be closed on Thanksgiving, about a week after its competitor Walmart  (WMT) - Get Report did the same.

“Closing our Stores Thanksgiving Day: when we say you can take advantage of great deals all season long, we really mean it. So kick back, relax and enjoy a long nap after you finish that last piece of Thanksgiving turkey,” the company said on its blog.

“This season, you can count on getting extra-big savings without the extra-long lines, with plenty of opportunities to score the best deals on the hottest items both before and after November 26.”

The company then urged customers to sign up for its free loyalty program, Target Circle. 

For decades almost every store in the country was closed on Thanksgiving. But that started to change about 30 years ago.

Morningstar analyst Zain Akbari has a mixed view of Target.

“We still believe the pandemic’s long-term consequences will be limited for Target, as it should be held captive by an intensely competitive long-term pricing environment,” he wrote in a commentary after Target’s last earnings report in May.

“The pandemic should accelerate digitization, but the mix shift to higher fulfillment cost channels should be ameliorated to some extent by increasing scale benefits, leaving Target’s long-term operating margin near 2019’s 6% level.”

Akbari put fair value for Target at $98. The stock recently traded at $123.57, down 0.11%. It has declined 4% year to date.

Walmart recently traded at $131.90, up 0.5%. It has gained 11% year to date.