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Business

Target sales down, stock plummets

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Opening sequence

Business

Target sales down, stock plummets

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00:00:00
>> Target missing the mark on sales for the first quarter, the latest in a string of retailers struggling so far in 2016. CEO Brian Cornell citing quote, an increasingly volatile consumer environment, with shoppers spending more on big ticket items and not on apparel. Target's stock taking a beating on the news, plunging nearly 9% Wednesday as the company warned the immediate future is not much brighter.
00:00:27
Thompson Reuters retail expert, Jeranne Martisse.>> Target's results are very telling of how more and more retailers are facing significant competition of online retailers, especially by the likes of Amazon. Target also saw a decrease in visitors. Shoppers are coming less to the stores and are buying less.>> Other brick and mortar retailers like Macy's, Nordstrom, JC Penney and Kohl's also recently reporting disappointing results.
00:00:54
But there is one bright spot in retail.>> The biggest question on everybody's mind is where's consumers spending their money. And when looking at who have been the top performers and top in terms of earnings, it's very evident that there's a nesting thing going on. Consumers are buying houses.
00:01:08
They're buying cars, recreational boats and are installing pools in their houses, suggesting that they're definitely investing in the stay at home experience. On top of that, when they do hit a brick and mortar store, they're going to the Home Depots, the Lowe's.>> Target's results dragging down the larger retail sector Wednesday with shares of rivals Walmart, Costco and Best Buy all lower on the day.