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Janney Montgomery Scott managing director David Strasser on Target's plan to stay competitive this holiday season.
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So much.
Right talk about the holiday shopping season yeah I gotta start thinking about it especially if you're a retailer target announcing it will match certain competitors prices.
Joining me today's talk about this strategies David Strasser -- Janney Montgomery Scott managing director of hard -- retailers but much more targets plans to stay competitive this holiday season David thank you so much coming in today -- you get.
So we know that consumers are very tight with their dollars -- a consumer confidence while improving is still at historic lows.
So target is stepping in with this price matching program for in store and online tell me about the Genesis of this and the strategy behind.
I mean it's just reality I mean -- consumers have transparency particularly around commodity prices are branded product.
You have no choice but to -- price competitive and unit -- retailers awhile to fully understand that and you know you hear him Best Buy talked about a Wal-Mart talked about a lot of people are talking about doing -- and and you don't really have a choice okay that he does it works is it.
Successful because you have to question the issue margin compression are going to see that that old that's the big question this holiday are they doing that these are defense or offense here -- -- -- -- just to protect.
Their current market chair will help generate market share at least you know take -- -- back from online.
We'll see I you know that that's probably the one of the big questions this holiday that everybody's going to be watching what -- you expecting in terms of holiday sales to retail sales actually surprised a lot of people looking stronger than expected -- -- we have -- I guess -- we do quarterly macro and he you know -- is getting better you know sustainability in question.
People are dipping into savings to stood to spend again that's good near turned longer term we don't know.
EEC these things happening in and you you there's a there's a pretty strong compelling case that the holiday should be fine it should be pretty good to -- ability to thirteen.
Different question -- -- lot more questionable but I I think mostly good.
I potential -- -- in the idea this pent up demand that we've been so.
Worried and so concerned about her future were in this heated election season right now there so many.
Things -- -- you talk about climbing this wall of worry I don't think that we're quite there yet but I think that people are generally starting to feel better so.
Let pent up demand -- think lead to an even stronger than expected C.
I think it's a very realistic assumption I mean assessment it there's no reason mentioned happening -- people.
The -- confidence numbers are -- which -- people are willing to dig into savings to spend more money feeling that the future's going to be brighter I guess and as -- that's happening to you know that it should be -- out there.
Is -- -- -- battle between online and brick and mortar retailers or are they working in tandem now target.
Has obviously the online and the brick and mortar -- similar story vs the Amazon are -- working together to gin up the consumer or is it really if -- Scott Thompson really good question.
And I I think what's happened over the last couple years is that the retailers are African -- the original brick and mortar guys realize that they had to have a much stronger go to market.
Mom prop strategy you know for the holiday that they couldn't -- online I mean in different companies have ignored it to different levels and they're the ones who have not embrace a look at the electronics they got hit the hardest there was no sales tax -- a big ticket mattered.
You know and all the manufacture their bounce back with different types of pricing you PP pricing on TV's for example.
You know and and so the these kind of been fighting back pretty hard and you know best -- -- one matching prices.
We'll see how that goes but it almost feels like those guys seen the worst of it are ready and are now kinda figuring out a strategy to confront it.
Like David Strasser we're all set to watch our retailers for the holiday season -- -- thanks get I was pleasantly.
