@kewur 6 months ago
Target vs. Kohl's: Who Wins the Retail Turnaround Battle?
Target vs. Kohl's: Who Wins the Retail Turnaround Battle?
Target and Kohl's are both working on turnaround strategies, but their paths look pretty different. Target is sticking with a steady formula, focusing on new, higher-quality items and keeping its reputation for being a more enjoyable place to shop. That 'Tar-zhay' branding and value/quality balance seems to be paying off, with stronger profitability and efficiency metrics than Kohl's. Kohl's, meanwhile, is a higher-risk bet—relying on in-house brands, a revamped store layout, and partnerships like Sephora, but still lagging on performance. Their gross margins are higher, but little of that flows to the bottom line. Kohl's stock has dropped 58% over three years and trades at a very low price-to-sales, so there’s potential upside if management can pull off the turnaround. But for most people, Target looks like the safer, more reliable choice thanks to a proven strategy that's already delivering results.

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| Best Stock to Buy Right Now: Target vs. Kohl's | The Motley Fool

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