Thursday, March 05, 2009

Frugal is the new Extravagant!

"Frugal is the new Extravagant."--My personal motto for some time now, and with that in mind, I have an even newer motto:
"Gimme More 'Target'!" The "cheap-chic" store is expanding--yes, you heard me correctly.....
Although recent news for retailers has been gloomy, I believe consumer confidence(and spending!) is steadily rising, and I think we have the Economic Recovery and Reinvestment Act(and President Obama!) to thank. I've been saying for months that Target Corporation will post record gains by mid-to-late 2009, and all signs indicate this will be the case. Read on, to see the good news for at least one retailer, and major expansion by two others!
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Target to open 27 new stores

(CNN)
-- Target Corp. this month will open 27 new stores employing a total of more than 4,300 people, the company said.

The stores' openings will come just weeks after the retailer cut 600 people from its headquarters staff amid what it called weaker-than-expected sales.

The retailer will hold grand openings for the 21 general merchandise stores and six full-grocery SuperTarget stores on Sunday. The new sites include the company's first two stores in Hawaii.

Each general merchandise store employs 150 to 250 people, and each SuperTarget has 200 to 300 workers, the company said.

In late January, Minnesota-based Target cut its headquarters staff by 9 percent and eliminated 400 open positions. The company, citing difficult economic conditions and sales that didn't meet expectations, also said it would soon close an Arkansas distribution center that employs 500 people and would cut back on planned new-store openings.

"We are clearly operating in an unprecedented economic environment that requires us to make some extremely difficult decisions to ensure Target remains competitive over the long term," Gregg Steinhafel, Target president and CEO, said in a news release that month.

Retailers in the United States took a hit last year as a weak economy weighed on consumer spending. Retail sales fell six straight months until January, when sales rose 1 percent, according to the Commerce Department. However, retail experts said they were skeptical a rebound had taken hold.

Still, two other retailers also announced plans to expand. Kohl's announced last month that it intends to open 55 stores in 2009, and Dollar General in February said it is looking to open more than 400 stores.

Target reported its fourth-quarter net earnings were 40.7 percent lower than the same quarter a year earlier. Same-store sales in January were 3.3 percent lower than a year earlier. December same-store sales fell 4.1 percent.

Target's new general merchandise stores are in Rogers, Arkansas; Santa Clarita, California; Pensacola, Florida; Bethlehem, Georgia; Honolulu and Kapolei, Hawaii; Council Bluffs, Iowa; Las Vegas, Nevada; Paramus, New Jersey; Cincinnati, Lebanon and Reynoldsburg, Ohio; Broken Arrow, Oklahoma; Philadelphia and Exton, Pennsylvania; Memphis, Tennessee; Houston, San Antonio and San Marcos, Texas; Midlothian, Virginia; and Sun Prairie, Wisconsin.

The new SuperTarget stores are in Kissimmee, Florida; Canton, Georgia; Hillside, Illinois; and Pflugerville, Allen and Lewisville, Texas.

The new locations will increase the number of Target stores to 1,699, the company said.
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Good News, Hope, and
Peace, kids.

8 comments:

Lydia said...

Fun and encouraging post. I hope that this newfound frugality sticks, that it becomes hotwired into America's collective consciousness for the long haul. :)

Lisa Allender said...

Lydia--I hear ya! The truth is, we all were too spend-y. I was never one for "status" items, but DEFINITELY spent/still spend too much on price-y teas, chocolates, etc. I'm learning to make my own fruit-infused teas, homemade chocolates, etc.... :)

Rhiannon said...

Good post Lisa. We have a target here which I've only very recently been going to...and now will go back there soon to try and find a few small furniture items (as I have no furniture) for my new apartment! Yes, I got it and will move in, in a few weeks! A place to call my own. I am so excited and feel so greatful and blessed.

Wanted to thank you about the advice about drinking water..I know I was not drinking enough and under so much stress and how that can screw your health up even worse. Am now drinking more water and more OJ!

Thank you again for your kindness.

Blessings,

Rhi

Dan said...

In my neck of the woods I always choose Target over Walmart(as they sit side by side). Much wider isles and less congested in general..not that a guy should notice such things!

Don't Feed The Pixies said...

What's ironic about all this cost cutting is that in a year when the company i work for has made its biggest ever profit they've announced a major wage freeze.

Go figure

Lisa Allender said...

Rhi, Hi! Glad you're getting settled. Can't wait to read your updates! And here's to "drinking"(water) for your helath!
Dan, Good for you--Target is a much better, kinder employer(Walmart is notorious for not providing benefits to employees, lower wages, etc.). And Target IS more fashion-friendly, too!(and yeah, I hear you on the aisles!)
Pixies, Hi! Yeah, it's strange--I certainly hope if the company you work for is "freezing wages", they freeze those AT THE TOP, as well. Seems like the "worker bees" are the ones sacrificing everything.

Georg said...

Bonjour Lisa,

Here in France the stores that are on an expansion spree are Aldi and Lidl (hard discounter in neo-French).

I have been told those two are very successful in the USA so my question is: do you happen to have them in your home town?

Those two nearly always do business near a big supermarket. They have a limited choice of goods but those they sell at "rock bottom". Thus most people go first to Aldi and then to the supermarket to get the rest.

Cheers, Lisa, we shall overcame.

Georg

Lisa Allender said...

Hi Georg--we DO have an Aldi nearby, but I have never visited.
I heard they are great with breads, packaged foods, etc.
I tend to shop at "Super-H", a Korean-owned 'Super-marche' as the French call it.The fresh fruits and veggies are quite amazing there!
Come to think of it, it(the Aldi) IS very close to a 'Super-H', as well as a "Whole Foods" (popular, upscale grocery) grocery.
I should check it(Aldi) out!