TARGET HOLIDAY SALES MISS ESTIMATES Target was expected to be a one of the big-box retailer winners this holiday season, but it seems that disappointing sales reports so that its holiday sales were weaker than planned. Target said its same-store sales were up just 1.4% during the holidays, compared with growth of 5.7% a year ago with the cause being that toy sales were about flat for the retailer this holiday season along with its electronics business underperforming. However, the retailer did report gains in apparel and beauty. Given the disappointing news, Target still main- tains that despite missing the mark, it is maintain- ing a prior outlook for fourth-quarter earnings. It also said in a press release that the fourth quarter of 2019 remains on track to mark Target’s eleventh consecutive quarter of same-store sales gains.
BED BATH & BEYOND MAKES MOVE FROM PROPERTY OWNERSHIP TO LEASING In a recent press release retailer Bed Bath & Beyond recently announced that they company had completed a sale-leaseback transaction rep- resenting about 2.1 million square feet of commer- cial real estate, which includes stores, office space and a distribution center with an affiliate of Oak Street Real Estate Capital, netting it $250 million in proceeds. The company said it is continuing to work with outside financial advisors to review its real estate and determine the best uses “to optimize its asset base and enhance shareholder value.” Bed Bath & Beyond also said it plans to use the proceeds from the deal to reinvest in its core business and transformation efforts, to fund share repurchases, and to reduce outstanding debt, or a combination of these tactics. Bed Bath & Beyond, also owns Buy Buy Baby and Harmon drugstores and has roughly 1,500 loca- tions in total
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SPOTLIGHT ON BUSINESS MAGAZINE • FEBRUARY 2020
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