Target Profits Down!
I was a little surprise to read that Target Corp’s profit was down by almost 8 percent for this quarter. Discount stores usually fair well in hard times like we’re in. The only thing that could have caused this is people are only purchasing necessities. Necessities profit mark up is very low, and in some cases no profit is made. Discount stores like Target and Wal-Mart use necessities to get you in the store. And once your in the store you also pickup other more profitable products. Anyway, they still turned a profit when others are reporting loses. Wal-Mart on the other hand did very well with a 17 percent increase for this quarter. Target will also have an increase once they start discounting a little more.
