The Hustle Daily Show How Target lost its edge
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Jul 16, 2025 Target's market cap has plummeted from $129 billion to $47 billion amid an identity crisis. The company is grappling with dwindling customer traffic and declining store standards, all while facing controversies surrounding its diversity initiatives. Inventory issues and a lack of clarity in its brand message have further hurt its performance. Meanwhile, industry news includes Sirius XM launching an ad-supported tier and the ousting of Tylenol’s parent company CEO, adding to the complexities of the retail landscape.
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Target's Rapid Decline
- Target's market cap plunged 61% since 2021 while sales stagnated for four years.
- The company faces declining store traffic and customer dissatisfaction with store conditions and inventory.
Operational Struggles at Target
- Target's store standards slipped due to leaner staff and juggling online and in-store demands.
- Inventory mismanagement caused overstock on wrong products leading to losses from markdowns and cancellations.
Brand & Competition Challenges
- Target lost its unique brand edge by partnering with weaker brands and less exciting collections.
- Competitors like Walmart and Chinese-owned retailers are capturing market share with trendier and cheaper alternatives.