How the Cooling Economy Is Stealing Target’s Christmas

THE NEW YORK TIMES—It was supposed to be a Target Christmas. Buffeted by high energy costs and a slowing housing market, consumers were expected to trade down from midpriced department stores, like Macy’s and Nordstrom, to discount retailers with designer cachet — Target’s undisputed terrain.

But instead of dominating this holiday season, Target is muddling through it, perplexing rival merchants and Wall Street analysts, who consider the chain a bellwether and are scrutinizing its performance for clues on the health of the economy.

In two of the last three months — September and November — Target’s sales growth has slipped below 1.5 percent, well under its historical average and lower than its biggest rival, Wal-Mart Stores. Read article.