Target Continues To See Decline In Sales Due To Holiday Credit Card Hack
Target customers are having a difficult time trusting the company after the credit card hack.
According to the large retail chain, sales from its most recent quarter increased to $17.4 billion or 1.7 percent. However, it saw its net profit drop 62 percent to $234 million. The company said the credit card breach cost the company $110 million.
Target said it hasn’t yet put the holiday fiasco behind it, where a security breach was unveiled and exposed millions of Target shoppers’ personal credit card information. Target has reduced its 12-month earnings forecast, trying to bring wary customers back to its store with deep discounts.
Strategic Resource Group Manager Director Burt Flickinger said it was going to take some time to win the trust back of their customers.
Still, there were some signs that things were turning around. Despite the traffic drop in the second quarter, it was still a significant increase over the first quarter’s 2.3 percent decline. On Wednesday, Target’s shares increased close to two percent to $60.33.
After the breach was found, Target lost about five percent of its customers.
John Mulligan, Target’s CFO, said many guests have finally come back. He said the company was winning back their customers’ trust and assurance.
Brian Cornell is Target’s new CEO, and since his appointment, Target has increased the payment system’s security and invested millions of dollars in a forthcoming execution of a chip-based credit card technology in close to 1,800 stores.
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