“Can a weirdly hot Santa Claus save Target stores?” That is a question I never thought I would have to ask myself, but that is what is going on today. While there are a growing number of complaints about Target (TGT) stores, missing items, and long lines in particular, a “weirdly hot” Santa Claus might turn things around. That is what investors are counting on, and Target shares are up almost 3% in Wednesday afternoon’s trading.
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First, the complaints. A new report from the Wall Street Journal makes it pretty clear that Target is not what it used to be. While Target used to be ground zero for “cheap chic,” these days, it seems like the emphasis is more on the cheap than the chic. In fact, customers are increasingly incensed about the lack of certain items on shelves, as well as it being difficult to get through the lines at checkouts.
But the one place cheap has not hit is in the groceries, as customers are looking elsewhere for those in hopes of better prices. Customers are also still quite concerned about the 2023 Pride Month collection that “went too far.” Finally, a growing number of inaccessible products, held behind locked glass doors to reduce shoplifting, is also grating on the typical Target customer.
Target Marketing
This brings us to the “weirdly hot Santa” concept, which in and of itself is weird just to talk about. A report from Today discusses Target’s new marketing icon: Kris K., who is actually “Kris Kringle,” or “Santa Claus.” But Kris recently had a bit of a glow-up, complete with a tight red sweater, a nattily-trimmed beard, and a red pickup truck.
The Today report noted a lot of praise on social media for this buffed-up St. Nick, and almost as many noted how strange that is. Either way, it is drawing attention, and that is marketing’s entire point in a nutshell.
Finally, more Black Friday deals have emerged for Target shoppers, though it is easy to wonder how many will take advantage of the big sales this year, given the overall state of consumer confidence.
Is Target Stock a Good Buy?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on TGT stock based on 17 Buys and 10 Holds assigned in the past three months, as indicated by the graphic below. After a 0.99% rally in its share price over the past year, the average TGT price target of $182.52 per share implies 40.41% upside potential.
