Target Boosts Soft-Home Prices
May 19, 2011,
MINNEAPOLIS-As it faces the need to improve both sales and margins, Target has increased its prices for some soft-home products by double digits, and expects to do so again later this year, according to Kathryn Tesija, executive vice president of merchandising.
Speaking in a conference call to financial analysts yesterday (with comments from a transcript of the call provided by SeekingAlpha.com), Tesija said the first price hikes have already taken effect on spring merchandise. "For the fall, we now believe increases will move into the double digits in both apparel and home, and will affect a greater proportion of these assortments than in the spring," she said.
Yesterday, Target reported a 2.7 percent increase in net income and a 2.8 percent gain in net sales in the first quarter. During yesterday's conference call, Gregg Steinhafel, chairman, president and CEO, said the company was "not satisfied" with its retail results.
"We are focused on driving sales through major initiatives like our PFresh remodel program and the 5% REDcard Rewards, while driving value and innovation in every category in our stores and online," Steinhafel said.
Other Articles By Author
Patti Carpenter Talks Color and its Importance in the Home
HFN's DIGITAL EDITION
2017 State of the Industry Report
Cautious Optimism, Mixed Results
Many expected 2016 would be a banner year, but the political and economic climate softened consumer confidence. It was also a year consumers spent more lavishly on home remodeling rather than decorating.
ALSO IN THIS ISSUE:
- TJX Unveils First U.S. Homesense Store - In a time when retailers are reducing store counts, TJX continues to get physical.
- Ikea’s Fluid Spaces - The retailer’s new intros reflect multifunctional rooms.
- N.Y. Home Fashions Market Preview - Textile textures get soft and cozy, colors warmer.