Target stocks were down 1.5% on Monday, as investors tried to gauge the extent of the retailer's sales losses when its cash registers stopped running over the weekend.
"It's awful." People are gearing up for the summer, for the camp … it was a Saturday, "said Stacey Widlitz, chairman of the SW Retail Advisors advisory group, about of the incident. "But these things happen, so guess what?" Things are returning to normal.
On Saturday afternoon, for about two hours, Target cash registers across the country stopped working, preventing customers from shopping in stores. Indignant customers visited Twitter and Instagram, sharing photos of them abandoning full baskets in the aisles. The company then said that the ruckus was due to an "internal technology problem" and was not related to security.
Last Sunday, Target's NCR payment processor had technical problems in one of its data centers. As a result, Target could not again process credit card payments in some stores for approximately 90 minutes. It was not related to Saturday's technical problems, Target said. Both failures have since been resolved.
Target did not comment on the estimated financial impact of outages. Online sales could still be processed last weekend.
In the end, Widlitz said, "Buyers have a very short memory with things like that."
The situation would have been much worse in terms of the negative impact if it happened to a distressed retailer, "where you can easily cross the mall to pick up the same item elsewhere," she said. Target's unique shopping destination is hard to match, she said. "Buyers will come back in [Target] stores. "
According to a marketing agency, the collapse of Target's national fund has generated more than $ 16 million of buzz on the Internet from news reports and other mentions on social media.
Apex Marketing found that Target's exposure to the brand had risen to $ 8.9 million this weekend, which was $ 6.1 million neutral and that it was $ 9.9 million. it was positive at $ 1.1 million, for a total of about $ 16.2 million. In comparison, the previous weekend, Target had only received a media exposure of about $ 435,000, said Apex.
Target stocks, with a market value of $ 44.5 billion, grew by more than 30% this year.