Target Seen Losing Customers in Wake of Card Data Breach

[Purveyor]

At the height of the holiday shopping season, Target Corp. (TGT) finds itself grappling to maintain customers’ loyalty in the wake of a breach that exposed data from 40 million debit and credit cards.

Since disclosing the breakdown last week, the second-largest U.S. discount chain has agreed to give some shoppers free credit reporting, assured them they wouldn’t be responsible for fraudulent charges and offered a 10 percent discount on purchases last weekend to regain their trust. In its latest statement, Target said yesterday it’s unveiling a dedicated website for communications to customers.

“They’ve been doing everything that they can,” Robert Passikoff, president of New York consulting firm Brand Keys, said yesterday in an interview. Still, “you’re going to see, at the wrong time of year, people who are moving to other alternatives until some comfort level comes back.”

Target said Dec. 19 that security for the cards may have been breached between Nov. 27 and Dec. 15 as they made purchases in stores. While the chain said it had identified and resolved the issue, the compromise occurred during the most important period of the year for retailers and with shoppers already showing reluctance to spend. The retailer said yesterday it’s aware of “limited incidents” of fake communications claiming to be from Target, prompting it to set up the dedicated breach communication site.

Even before the incident, Target had been struggling to boost sales and earnings. The retailer’s third-quarter profit trailed analysts’ estimates as U.S. shoppers held back and expansion into Canada dragged on earnings, sending net income down 46 percent from a year earlier.

more...

http://www.bloomberg.com/news/2013-12-24/target-seen-losing-customers-in-wake-of-card-data-breach.html

[Common Sense Party]

1. I still haven't seen a clear explanation of HOW this happened. I'm not happy that it DID occur,

but I'm not boycotting Target just yet.

We did replace the debit card, though.

[elfin]

2. Always liked Target so I wouldn't have to go to Walmart

I suspect a sabotage by Walmart.

Used to go to KMart, but it seems to be going under.

Use Kohls for bargains, but will continue to go to Target and monitor ALL big box purchases.

[SoCalDem]

3. They won't really know until months from now

I suspect that there are MANY out here who have slowed their shopping entirely... at all places.

Retailers have to realize that there is a confluence of things happening.

Boomers are not buying stuff at the rates we once were. Our money is being saved for our unsteady retirements.

What left over money we have is also being channeled to our grown 30-40 something children who are in dire straits..or to our grandkids who may need help with college loan payments or to our own parents (younger Boomers may still have one or more parent/inlaw still living(who are out of money and unable to live on their own,.

Those of us who still live in the "larger" home we had planned on selling to help finance our retirements, may be full up again...and not with people who are sharing the expenses. At a time when many had expected to be living a a smaller place with lower costs, are facing higher costs than at any time they lived there.... A friend of ours had planned to sell her house when her husband died, but before that happened, her son , his wife & their 2 kids moved in when they both lost teaching jobs.

Grandma is now babysitting while they job-hunt, and all of her expenses have tripled...and she often has no car because they had to sell one of theirs before they moved in, so they use her car too while they both job hunt. They think they hare helping her get over the loss of Daddy, but they have about worn her out. She has rheumatoid arthritis and is often feeling quite ill. Her car was low mileage, but now is starting to need extra maintenance (they have been with her for almost a year).. There is never peace & quiet because you never have much of that with a 3 & 5 year old.

Her Christmas wish was for them to get jobs, but even then she knows they will not be able to move out for a while afterwards because they are flat broke & starting over..

There are many like her who just are not shopping much anywhere these days.