>> Target shares suffering their worst day in almost 20 years, after announcing a worse than expected sales slump and a gloomy forecast for the rest of the year. I'm Conway Gittens in New York, the discount retailer, announcing, Tuesday, that it is going to spend $2 billion to defend itself, not only from the onslaught of competition coming from online retailer Amazon, but also from a revitalized Walmart.
Target admitting its prices are too high and its technology too slow. And so, the spending spree will help it avoid the next retailer with one foot inside the retail graveyard. The spending is gonna focus on three areas. Number one, analytics. Target wants to better understand what customers wanna buy in store and online.
Number two, improving the supply chain. They wanna get those products to customers quicker. And number three, expand Target Express. Those are smaller-format stores aimed at millennials and at urban neighborhoods. And that's not all, in a retail environment where more consumers are shopping online for the low prices, as well as the ease.
Target has promised to do some, quote, aggressive discounting that will cut into profit margins by $1 billion, that outlook Tuesday catching even the most worried investors off guard, the stock slumping to a 2.5 year low.