Target Data Breach Strains Q2 Earnings

Months after incurring a data breach that compromised data from 70 million customers, Target is still feeling the pinch.

August 22, 2014

MINNEAPOLIS, MN — A major data breach suffered in late 2013 continues to put a strain on sales at Target, Bidness Etc. reports.

Comparable store sales remained flat, while the number of comparable transactions fell 1.3% during the quarter. The company’s performance in Canada is markedly down, with comps declining 11.4% during the quarter.

The retailer received stiff consumer backlash after it incurred a massive data breach, which compromised the card data of more than 70 million customers. Since then, it has spent roughly $148 million on breach-related expenses.

Fearing another data breach, some consumers are avoiding shopping at Target, while demand from Gen X consumers, a core Target demographic, has also slowed.

In an effort to boost its bottom line, Target announced that it is restructuring its supply chain in Canada, while keeping most of its stores open until midnight to attract late night shoppers. The impact of those moves will be reflected in the company’s Q3 results.

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