Ann Logue was recently a guest on #PreMarket Prep, a daily trading idea radio show hosted by Joel Elconin and Dennis Dick. Tune in to the daily broadcast live Monday-Friday at 8 a.m. ET here.
Consulting Analyst and "Day Trading For Dummies" Author Ann Logue talked about Target Corporation TGT Wednesday on the show.
Logue said the company was “cleaning things up” following its “disaster” in Canada which Jim Cramer called the “biggest blunder in the history of retail.”
Beyond its issues in Canada, however, Logue thought Target had a problem with the idea of offering cheap clothing with “high design” because there were many competitors in the segment.
As a specific example of the challenges related to the “high design” idea, Logue discussed what happened when Target released a line from Lilly Pulitzer.
“The Lilly Pulitzer line was a success from a sales standpoint but a disaster from a marketing standpoint because you had all the eBay sellers come in, snap up all the merchandise, so the merchandise is sitting on eBay where nobody wants to buy it, and that was a lot of potential traffic for the stores [Target] lost,” Logue said.
Related Link: Lilly Pulitzer For Target: Bullseye Or Bust?
Looking ahead, “the good news is they’re cleaning up Canada,” according to Logue, however, she again concluded that “if we’re thinking longer term the bad news” was the competition for the high design market segment.
Target Corporation was moving higher Wednesday and recently traded at $80.47, up 1.76 percent.
Listen to the show here:
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