Target apologized for the outage
Over the weekend, Target (TGT) faced a series of technical issues. First, the cash registers quit working. Customers waited in long lines, while many of them abandoned their carts. Target blamed an “internal technology issue” for the outage, which lasted for a few hours on June 15. Target apologized for the inconvenience and fixed the problem. The company confirmed that there wasn’t a data breach. None of the customers’ data was compromised.
On June 16, the company faced another technical issue. Target wasn’t able to process select card payments for 90 minutes at some stores. Some customers complained about the technical issues on social media. The issue on June 16 wasn’t an internal problem. Target said that its payment vendor had issues at one of its data centers.
Target operates more than 1,800 stores and offers online order pickup services across 1,250 stores. The retailer provides same-day delivery service though Shipt across 1,500 stores.
Target stock outpaces Walmart and Costco
Target stock has risen 32.8% on a YTD (year-to-date) basis as of June 14. The company’s focus on enhancing customers’ shopping experience through expanding digital offerings is paying off and supporting its stock.
Walmart (WMT) and Costco (COST) shares have benefited from their continued momentum in comparable sales. Walmart and Costco stocks have risen 17.1% and 27.7% in 2019. Walmart and Costco have lagged Target in terms of growth.