Loss Of Focus Cause Of Target's Downfall, Analysts Say

Target's troubles emerged after the discount retailer lost its focus as a seller of designer-label clothing at consumer-friendly prices. Costs of terminating its failed expansion attempt in Canada and closing underperforming stores in the United States reached $5.1 billion, the company said. Target's problems began in 2011 when growth began to slow down and its margins started shrinking. Target took direct control of its online sales operations, which had been handled by Amazon since 2001; however, it failed to catch up with its rivals in the e-commerce segment. Its share price recovered significantly in the past months, with some analysts and investors becoming confident that CEO Brian Cornell's turnaround efforts might work.