Target’s comparable sales have fallen 4 quarters in a row

• Target’s comparable sales fell 3.7% last quarter, marking its fourth straight quarter of decline.
• Improvements in e-commerce were not enough to cover the 4.8% decline in in-store graphics products.
• The company is planning a series of stops to avoid a fifth quarter of decline.

Last quarter, Target reported revenue of $24.5 billion, with comparable sales declining 3.7%, marking its fourth consecutive quarter of decline. Although e-commerce orders returned to growth and improved by 1.4%, this was not enough to cover the 4.8% decline in in-store orders.

Unlike total sales, comparable sales do not include new and closed stores, and analysts often use this metric to assess a company’s underlying health. In Target’s case, the measure only includes results from locations open for at least 13 months.

While the company managed to improve profitability last quarter, CEO Brian Cornell told investors Wednesday that “we won’t be satisfied until we see positive results in the second quarter and the rest of the year.”

Target is currently taking a number of actions to influence this change, the latest of which are price cuts on thousands of items that Cornell says will collectively save shoppers millions of dollars this summer.

The company also renewed and expanded its Target Circle membership program, adding more than one million new customers this quarter. It didn’t specify how many of them were on the paid tier, which offers unlimited free shipping like Walmart+ and Amazon Prime.

Target even tried on a few new hats this quarter – wholesaler and exporter – as part of a partnership with Canadian chain Hudson Bay to sell its wildly popular Cat and Jack children’s clothing line.

Returning to the topic of private labels (private labels, as Target likes to call them), the company has expanded its product range to include the budget essentials brand Dealworthy and invested in improving the quality of the Up and Up lines.

Unfortunately for Target, the changes made over the past few months haven’t caused people to shop more often or buy larger baskets – something the company largely attributes to inflation-weary consumers and tight household finances.

Heading into summer, Target faces the difficult task of balancing top sales growth through deals and promotions while maintaining profitability in line with investor expectations.

“We are encouraged by the significant progress we have seen in recent quarters,” Cornell said. “These trends reassure us that we are on the right track and on track to return to growth in the second quarter.”