Let's talk about retail.
Chris Versace, a contributor for TheStreet's sister site Real Money, weighed in on retail following Target's comps miss.
Target reported sales that rose 1.4% between Nov. 1 and Dec. 31 in stores and through its digital channels. However, the number came in below forecasts. The retailer also warned that growth for the full quarter, which includes January, will likely come in less than half the 3% to 4% growth it had been expecting.
The Minneapolis-based company pointed to weak sales of toys and electronics – two key holiday-season categories that all retailers count on to boost sales. It said it was maintaining its profit targets, in part because other categories that did have robust sales earn higher margins.
"It has been a very interesting, last couple of months given the holiday shopping season that was compressed. You know, my suspicion was that it was going to force a lot of consumers to shift increasingly online and that is indeed what the data is showing us, whether it's Costco that had their digital sales up 30% or even Target, which you mentioned had horrific November-December comps relative to expectations. They were still up 19% for their eCommerce sales," said Versace. "And I think we're just going to continue to see more and more of that, not only for convenience but as consumers continue to look for deals which are far easier to do online than almost anywhere else."
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