Target's holiday advertising push struggles to regain market share, but investors expect minimal growth

From Investing.com: 2024-12-24 14:15:48

Major U.S. retailers Target and Walmart are ramping up ad spending on TikTok and streaming platforms for the competitive holiday season. Target saw a small increase in shopper spending early December, but struggles to regain market share. Target’s shares have fallen 7% this year, compared to Walmart’s 72% gain.

Target’s advertising spending increased 8% online, including a 70% boost on TikTok. Analysts expect minimal growth in net advertising spending for Target in 2024. Target’s late surge in advertising aims to attract shoppers to spend gift cards before year end. Black Friday and Cyber Monday sales were not as strong as expected.

Target is focusing on last-minute deals, offering discounts on toys, video games, and kitchen appliances. However, shoppers only slightly increased spending in early December. Investors believe Target needs to lower prices to compete with Walmart and Costco. Target’s long-term goal involves shifting strategy over several quarters to regain market share.



Read more at Investing.com: Target’s holiday advertising push will only take it so far, investors say By Reuters