Target immediately launched an external search for a new CEO. Cornell had started his career at Tropicana, and then its subsequent owner, PepsiCo. Cornell sought to change the atmosphere at Target.
He relaxed the dress code, ate regularly in the company cafeteria, opened the fall management meeting to the press, and set up a lounge on the executive floors for new merchandise that is in the pipeline. He learned that customers felt products were unimaginative and behind the times, especially in colors and styling. Suppliers reported that buyers were solely focused on cutting costs, and were unwilling to take risks on new, unique items. Target increasingly relied on giving prime shelf space to the highest bidders.
Despite the increased space and expansion of food departments, Target never had been able to get these categories to be more than 20 percent of sales, while Walmart had more than one-half of its sales in food. See Table 4. Much of the offer was house brand, and produce, meat, and dairy were seen as inferior to that offered by other discount retailers, including Aldi, Food Lion, and even Walmart.
The lack of organic food was a problem for younger customers. At the same time, prices were seen as higher than Walmart, TJMaxx, or other competitors. According to Kantar Retail, in , 53 percent of Americans had shopped Target or target. Target Canada continued to be a major disappointment through Seeing empty aisles, poor merchandising, and much better competition, Cornell decided that it would take too long and too much money and effort to fix Target Canada, and that it would take at least until to make a profit.
The other major decision involved the sale of the pharmacy operations in 1, Target main stores to CVS Health, in a landmark deal for both companies. But, Target was being challenged by market leaders CVS and Walgreens, each of whom had extensive drug distribution networks. Target also was faced with the changing economics of pharmacy, with expanded generics, the rise of complicated new drugs, and the challenge of recruiting and retaining pharmacy staff. CVS Health will operate the pharmacies under a perpetual operating agreement, with annual lease payments to Target.
Walmart announced it had no intention of exiting the pharmacy business. Analysts wondered if the pharmacy-in-store transaction was the beginning of Target moving toward a hybrid shop-in-shop strategy, and whether that would be good for the company. Target also ran into controversy on social issues. Get Paid Less. Then in , Target announced that its bathroom facilities would be open to transgender customers and employees, in choosing the facility with their self-identified gender.
This decision led to a huge public outcry from customers who were concerned about sexual predators and public safety. Regardless of perspective, it was one more issue with which Target had to contend. Returns on Target stock still lagged both the market and its retail peer group see Table 5.
Cornell wanted to bring Target back to its historical strengths. Backlinks from other websites are the lifeblood of our site and a primary source of new traffic.
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Stock Screener. We gained volume and value share globally in nonalcoholic ready-to-drink NARTD beverages for the tenth consecutive quarter with share gains across most key categories. For the year, we gained volume and value share in total NARTD beverages as well as in both the sparkling and still beverage categories. The combined power of the global "Open Happiness" campaign and the strength of holiday programs drove growth in brand Coca-Cola.
Brand Coca-Cola unit case volume grew a solid 4 percent in the quarter, with strong growth across global markets, including 22 percent in India, 13 percent in China, 12 percent in France, 5 percent in Mexico and 4 percent in Germany. Total sparkling beverage unit case volume increased 3 percent in the quarter, with international sparkling beverage unit case volume increasing 5 percent, cycling 4 percent growth in the prior year quarter.
Total still beverage unit case volume increased 9 percent in the quarter, led by growth across the portfolio, including juices and fruit stills, teas and water brands. Still beverage unit case volume increased 14 percent internationally and was even in North America. Early last year we committed to align our Company and our system to emerge from this global crisis stronger. Our performance results for the year underscore that we are doing just that. Now, with our Vision as our roadmap, we look forward to entering our next decade of growth as we work closely together with our bottling partners to usher in a new era of winning for the Coca-Cola system.
While net revenue was favorably impacted during the quarter by positive concentrate pricing, geographic country mix offset this benefit as economic recovery in emerging markets outpaces the rest of the world. Additionally, fourth quarter net revenues were impacted by six fewer selling days versus the prior year quarter. Excluding the impact of six fewer selling days, we estimate that fourth quarter currency neutral net revenues would have been in line with our long-term target.
For the full year, comparable currency neutral net revenues excluding structural changes increased 4 percent. Cost of goods sold increased 3 percent in the quarter. This increase is primarily driven by the 1 percent increase in concentrate sales and a 6 percent impact from currencies, offset by a favorable impact from lower input costs. Selling, general and administrative expenses increased 9 percent in the quarter, and increased 2 percent on a currency neutral basis.
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