Target Stores Feel Housing Pain
Among the losers in the housing downturn are Target discount department stores.
Target sells twice as much home-related goods as Wal-Mart and its sales, as well as its stock price, have been feeling the pinch.
Since the housing bubble burst in 2007, sales of home-goods at Target declined more than 20 percent.
“The fact that [home goods] were such a strong core and magnet department certainly had a powerful impact on customers and investors alike,” says Chris Ohlinger of Service Industry Research Systems, Inc.
He believes that housing has now hit bottom and Target will begin to recover–a process, he says, that will take two years.
Source: BusinessWeek.com, Damian Joseph