Via blogs.marketwatch.com/greenberg:
Follow up to an item here from a little over a week ago on Target (tgt): Now the company says its September comp stores sales won't just miss, but missed by a long shot. Seems there were fewer customers in the stores -- and that can't be blamed on weather, which has been unbelievably delightful throughout much of the country. (Was in Chicago last week; weather was better than San Diego!) Could it be the credit crunch is finally starting to hit home? As we pointed out previously, Target's credit card receivables have been growing faster than sales. Target has said that's the result of offering credit to higher quality credits, but that doesn't mean high FICO scores didn't get in over their heads, using all types of new credit as a money-source of last resort. Have those same people suddenly cut back on spending? Or did they already tap out their new cards? Or has Target started offering less credit? OR was the strong back-to-school season the exception, not the rule, in this slowing economy? Whatever the reason, it's yet another sign of these very strange times.
$61.0 (09/25/07)
