Mark Tritton, Target’s new chief merchandising officer, has been working with Apple to figure out how to position the new products Apple is expected to unveil this fall in a way that helps it improve second-half electronics sales, he said.
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According to Cornell, electronics sales decreased by double digits, with Apple product sales responsible for a third of the overall drop. The company’s CEO, Brian Cowell, wasted no time in blaming Apple for the slump, saying that Cupertino’s products were to blame for a third of the total drop in sales.
Los Angeles is to the marijuana industry “what Silicon Valley is to technology or what NY is to fashion and finance”.
Shares of the company fell 6.5% to $70.61 in early Wednesday trading.
Looked at from the other direction, Apple has an outsized effect on Target’s overall sales.
Target experienced its first comparable sales drop in more than two years in the May-to-July period, the company said Wednesday, and executives lowered their outlook for the rest of the year.
Revenue slid 7.2% to $16.17 billion, partly reflecting the sale of its pharmacy business to CVS Health Corp.
A point worth noting is that a decline of about 2.2% on year over year basis has been seen in foot traffic at Target stores, adding another layer to the lower-than-anticipated sales of electronic devices in general and Apple products in particular.
CEO Tim Cook has said that his company is working on new products, that the smartphone will continue to be integral to people’s lives for the near and midterm future, and that he believes in Apple’s future.
Cornell said on the earnings call, “Our guests come to us looking for those products”.
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Cowell told investors and reporters that a lack of “newness” and “innovation” from Apple meant that consumers were not buying iPhones and iPads at the same rate as before. “We’re putting together plans with Apple and our merchandising teams to make sure we’re ready to take advantage of that in the back half of the year”.
