Target Corp and Wal-Mart Stores reported improved results for the 3rd quarter. But, the two business giants are gearing up for the upcoming holiday season. Consumers have plenty of bargains on the offer, and are likely to be very selective!
Customers indicated that they continued the shopping with discipline, focusing more on budgets and listings and splurging on the discretionary items. In the 3rd quarter, the company experienced the increase in the trips that are focused on items that are based on needs.
Gregg Steinhafel, chief executive said that Target’s plans are big for this holiday season. He also said “We feel good regarding the ability for delivering inspiring merchandise”.
The upcoming holiday season and the holiday quarter will be more competitive with prices playing major factor.
Sears Holdings Corp said that the 3rd quarter loss in this fiscal year widened the same-store sales to weaken. Though the operating costs have come down in past few days, Sears owned Kmart. For the current quarter, Wal-Mart’s net income has risen by 9 percent. The company can consider this as 3rd quarter success, but with the holiday season ahead, they need to prepare for a big battle.
For the holiday shopping season, Wal-Mart has started the layaway program and is opening at 8PM EST on the Thanksgiving night. In its earlier launch, the company generated $300 million in the 3rd-quarter volume when compared with previous year.
Wal-Mart has raised its low end of the forecast with full year earnings by continuing the operations with 5 cents per share, and expecting USD 4.88 to USD 4.93 per share.
At Target, fiscal 3rd-quarter earnings have rose 15 percent due to the asset sale gain. The company forecast 4th quarter earnings of USD 1.45 to USD 1.55 per share, which includes expenses that are related to the Canadian market entry.
Target is looking for ways to improve the sales and shoppers are extremely cautious about their spending in the current sluggish economy. Target is offering 5 percent cash-back to people who use their debit, Visa, and credit cards.
Target reported profits of USD 637 million for the 3rd quarter, with 96 cents per share. The total revenue has increased by 3.2 percent to USD 16.93 billion.