00:00This morning, though, we get results from Target, Target and Target narratives, profit forecasts, as we were talking about, discounts and slowing demand weighing on earnings.
00:08Bloomberg Retail Reporter Emily Cohn joins us now. So what are we learning about the consumer that we're already a little bit worried about, Emily?
00:16Yeah, I mean, Target is seeing a consumer that is choppy in its spending, not leaning into the discretionary things that Target is known for.
00:30The retailer trimmed its forecast again, signaling that its rebound is going to take a bit more time.
00:35And despite an exciting announcement about a partnership with OpenAI, which boosted Walmart's shares, Target is down this morning on its trimmed forecast for the year.
00:46How does this set us up for Walmart tomorrow?
00:49So Walmart is in a different position. Walmart has really leaned into its value orientation.
00:55It's it's brought in higher income shoppers who are looking for a deal.
01:00Its grocery assortment is bringing in people who otherwise might have shopped at a more expensive grocer during these times.
01:08So we're looking at Walmart. T.J. Maxx is also another interesting one this morning.
01:13I think T.J. Maxx is pulling in that discretionary shopper who's looking for value, looking for a deal, looking for fun.
01:21Is it fun, T.J. Maxx? Do you like T.J. Maxx?
01:24Because I've heard from a lot of people on our staff, you know, our our our our executive producer and Tora, she says when she has had a bad day, you know, rather than a glass of wine to unwind, she'll go to T.J. Maxx.
01:38Yeah. And I think that actually speaks to part of Target's problem. Look, like you don't go to T.J. Maxx because you need stuff from T.J. Maxx.
01:45You go to T.J. Maxx for fun, for discretionary things, for things that you wouldn't otherwise.
01:49Can't you do that at Target, though? Like you go because you're like, I need to go get some more toilet paper.
01:53And then you're like, oh, cool, like a little running top or something.
01:56There's no hunt, right?
01:58I think the idea is that you get to hunt through.
02:01But, you know, Romaine Bostic says it's just too messy for him.
02:03Yeah, I get that. Look, if you are a ball of anxiety like I am, sometimes that's very difficult to bargain hunt.
02:09I think that's exactly Target's problem.
02:11I think that used to be what boosted Target.
02:14That used to be what they were known for and they've lost that.
02:16And now they're trying to bring it back.
02:18More bargain hunting. Emily, thank you so much for joining us.
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