A MAJOR retailer is facing significant challenges, with customers increasingly turning to rivals like Costco, Walmart, and Amazon for their shopping needs.
One of the brands struggling the most is Target, which has seen a steady decline in sales and foot traffic, as shoppers express their frustration with its shift in policies and deteriorating customer experience.
AlamyThe retailer’s troubles are not just speculation[/caption] EPAWhile Walmart and Costco are posting strong gains, Target’s sales growth has stagnated[/caption]Once a beloved retail giant, Target’s recent performance has left many questioning whether the brand can regain its former appeal.
A Facebook user summed up their frustration, saying: “I haven’t gone to a Target in well over a year.
“They have overpriced, uninteresting, cheaply made products.
“Their customer service sucks. When I had to start waiting 15-20 minutes for an associate to unlock the shelving unit so I could get a basic can of shaving cream it was a turn off.
“This is unwelcoming and unfriendly. When they dropped their diversity programming I was done with them.
“I would rather support retailers like Costco and Trader Joe’s and local places.”
The retailer’s troubles are not just speculation.
Target’s financial performance has been underwhelming for the past two years.
While Walmart and Costco are posting strong gains, Target’s sales growth has stagnated.
Foot traffic has dropped consistently, and data from the foot traffic analytics firm, Placer.ai, shows that Target has experienced a steeper decline in visits than its competitors.
In response to these issues, Business Insider sent reporters to three Target locations in the US—Madison, Wisconsin; Ventura, California; and Washington, DC—to get a firsthand look at the situation.
The results highlighted a common thread: while some stores remain in good shape, others are clearly falling behind.
The Madison Target, for example, appears to be one of the retailer’s stronger locations.
Located near the University of Wisconsin, the store is well-stocked, clean, and appears to be drawing in shoppers.
However, even this store had its issues, with some sections, like the Bullseye’s Playground, showing empty shelves, possibly due to seasonal changes.
But overall, the Madison store seemed to reflect the vision Target had in mind when it wanted to create a seamless shopping experience for its customers.
On the other hand, the Target in Ventura, California, painted a different picture.
Foot traffic was noticeably lower, and although the store’s shelves were neatly stocked, the empty parking lot and quiet aisles indicated a lack of shoppers.
The Ventura store’s tidy aisles and well-organised displays suggested that employees were trying to make the best of a slow situation, but it was clear that not many customers were engaging with the products.
This reflects a broader issue, as analysts suggest that Target’s ability to attract casual shoppers has weakened over time.
The Washington, DC, location, a smaller-format store, highlighted some of the biggest challenges Target faces.
Many products, including men’s socks and laundry detergent, were locked behind glass doors, a security measure to combat theft.
But for customers, this added another layer of frustration, as getting an employee to unlock the cases often proved time-consuming.
At times, the lack of staff at the checkout registers and the self-checkout lanes further compounded the problems.
In densely populated areas like Washington, DC, the lack of quick service can be a significant deterrent, especially when customers are used to the efficiency of Amazon or even smaller, more agile competitors.
Target’s issues are rooted in a lack of clear focus.
Which companies have dumped DEI policies after Donald Trump's executive order?
Major brands have either ditched or are re-examining their DEI initiatives after Donald Trump cracked down at the federal level.
Walmart McDonald’s John Deere Target Meta Platforms Ford Brown-Forman – the parent company of Jack Daniels Tractor Supply PBSGoldman Sachs has retreated from DEI, by dropping a requirement that forced some clients to include women and members of minority groups on their board of directors.
Google has rescinded a goal in 2020 to increase representation of underrepresented groups among the company’s leadership team by 30% within five years.
Amazon said it was halting some of its DEI programs, although it did not specify which ones.
Lowe’s said the company was “reviewing” its DEI programs.
Harley-Davidson said it does not have hiring quotas and would no longer have supplier diversity spending goals
While some locations manage to provide an acceptable shopping experience, the overall offering isn’t as appealing as it once was.
The company’s pricing isn’t significantly better than its competitors, and its product range often fails to excite customers.
As retail analyst Neil Saunders points out: “One of the issues with Target is it really has lost its focus, as a lot of other retailers have increased and improved their focus.”
Target’s ability to deliver that signature “Tarzhay” experience—where customers end up purchasing far more than they planned on—is being overshadowed by an increasingly uninspiring in-store experience.
The once-playful shopping atmosphere, which attracted people to leisurely browse, now seems more functional and less engaging. With competitors focusing heavily on delivering exciting promotions, exclusive products, or unbeatable deals, Target is finding itself falling behind in the retail arms race.
As other retailers, such as Walmart and Costco, continue to invest heavily in areas like convenience, low prices, and a unique shopping experience, Target seems to be struggling to keep pace.
Its efforts to improve customer service, such as the addition of more checkout lanes and better inventory management through technology, have not yet yielded substantial results.
The challenge now is not only about improving in-store experiences but also adapting quickly to meet the growing demand for digital-first shopping options.
While foot traffic in stores has waned, Target’s digital sales are growing.
The retailer has invested heavily in improving its online presence, with features such as drive-up services, curbside pickups, and an expanded delivery network.
However, analysts argue that even with this digital growth, Target is failing to fully leverage its online potential.
The convenience of e-commerce is a significant driver of customer decisions, and Target’s inability to provide the same seamless experience both in-store and online may be part of the reason shoppers are flocking to competitors like Amazon or Costco, who have perfected the art of online shopping.
GettyTarget’s financial performance has been underwhelming for the past two years[/caption] Read More Details
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