Target lowers forecast, estimates breach costs

[Omaha Steve]

Source: AP-EXCITE

NEW YORK (AP) — Target has lowered its second-quarter forecast citing the promotional discounts it had to use to attract shoppers.

The Minneapolis-based retailer also said Tuesday it expects gross expenses tied to a massive data breach this past winter to come to $148 million in the period, which will be offset by $38 million in insurance. It also paid $1 billion to retire $725 million in debt.

Target Corp. has been reeling since it announced in December that hackers stole millions of customers' credit- and debit-card records. The theft hurt the chain's reputation and profits and spawned dozens of legal actions. Target is facing troubles on a number of other fronts as well, including the perceptions that its prices are higher than those at Wal-Mart Stores Inc.

The company's expansion into Canada, its first foray outside the U.S., has also been a disappointment. Analysts have said that Target botched its Canadian expansion by moving too aggressively.

FULL story at link.


FILE - In this Dec. 19, 2013, file photo, shoppers arrive at a Target store in Los Angeles. Target is lowering its forecast for its second quarter because of costs related to a massive data breach and the repayment of debt, the company announced Tuesday, Aug. 5, 2014. (AP Photo/Damian Dovarganes, File)



Read more: http://apnews.excite.com/article/20140805/us--target-data_breach-fda23469e5.html

[gvstn]

1. I stopped going to Target after the data breach.

I didn't think they handled it well at all. They seemed to hold out on telling people in order to not lose business during the Christmas season rather than warn their customers.

I really only went their once or twice a month for a few items such as cat litter and a couple of health and beauty products so no great loss for me but their response to the breach soured me on Target pretty much for good.

[Lifelong Protester]

2. For me, it's either Target or Walmart

in my area for certain shopping needs. Or Walgreen's. Seems like every place has its share of reasons not to go there. I did cancel and received all new debit/credit cards after the winter debacle.

Target is in trouble, I fear. And I can't go to Walmart-I'll do without first.


There are no "mom and pop" places left to take up some of the slack. Our local Corner Drugstore was bought by Walgreen's, for starters.

[greiner3]

4. ...For me, it's either Target or Walmart...

I have a K-Mart where I've been trying to spend my money.

But for more than a couple of reasons (poor merchandise options, long lines, grouchy cashiers, one person at Customer Service, store built in the mid 70s and hasn't been remodeled since, did I say there are grouchy cashiers...

As a personal aside, I bought cheap sandals and after 2 days of wearing them they had flattened to 1/3 of their sole, not much to begin with, and I believe I developed plantar fasciitis because of this).

So no more K-Mart for me; besides, their prices for the same product at Target is much the same.

Target sucks though.

[tomm2thumbs]

3. Target