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BUSINESSFriday 30 October 2015
Walmart and Target’s Holiday Plans
ANNE D’INNOCENZIO In this Nov. 28, 2014 file photo, a shopper uses her iPhone to compare prices at Wal-Mart while In this Oct. 23, 2015 file photo
AP Retail Writer shopping after midnight at a Target store in South Portland, Maine. a worker touches the logo of
NEW YORK (AP) — Wal-Mart Volkswagen AG on a Phaeton
and Target, two of the big- Associated Press in Dresden, Germany.
gest U.S. retailers, on Thurs-
day rolled out plans to lure Here’s what shoppers can will waive the $25 minimum displayed correctly and Associated Press
shoppers into stores during expect from both retailers threshold starting Nov. 1 that mannequins have cur-
the holiday season that in- during this holiday season: and it will end Dec. 25. Last rent fashions. VW affirms
cludes discounts, stepped- DISCOUNTS week, Best Buy, the nation’s OTHER THINGS THEY’RE DO- commitment to
up marketing and spiffed Both Wal-Mart and Tar- largest consumer electron- ING Chattanooga,
up stores. get said discounting will ics chain, said that it would Wal-Mart unveiled a new
The moves illustrate how im- be key. Wal-Mart says it drop its $35 minimum to tool on its mobile app in Tenn. plant
portant the holiday shop- will be offering price cuts, qualify for free shipping. time for the holiday season.
ping season is to retailers. or what it refers to as “roll- CHANGES IN STORES The app allows online shop- DAVID McHUGH
It’s a roughly two-month backs,” starting Nov. 1, on Wal-Mart will have work- pers to check in when they AP Business Writer
period that accounts on thousands of holiday prod- ers demonstrate toys, and arrive at the store to pick FRANKFURT, Germany (AP)
average for 20 percent of ucts that will last at least 90 there’ll be more food tast- up their orders. It said that it — Volkswagen is sticking
the retail industry’s annual days. That’s the same time ings. And they’ll be carols expects nearly 75 percent with planned investments
sales. as a year ago. It also says it playing too. It’s part of its of traffic to its website to at its plant in Chattanoo-
Wal-Mart and Target, in will offer fewer “weekend” plan to add more theater come from a mobile de- ga, Tennessee — including
particular, have a lot to only deals. to the stores. vice this holiday season. production of a new SUV
prove this holiday season. Target didn’t provide spe- Meanwhile, Target is fea- That’s up from 70 percent a there next year — despite
Both are heading into the cifics on its discounting, but turing its mascot, a white year ago. Target said start- the uncertainty caused by
holiday shopping season in late September it said bulldog with the trademark ing next week, 121 of its its emissions scandal.
with turnaround plans they it would match its online red bullseye painted on 1,800 stores will offer curb- Volkswagen said Thursday
launched after being bat- prices with more than two him, throughout the store side pickup, up from the it is reviewing investment
tered by the economy and dozen online competitors. more prominently. And current 21. spending worldwide as it
their own mistakes. FREE SHIPPING the retailer is overhauling Target is unveiling a new faces huge costs to deal
Target’s turnaround is gain- Wal-Mart is sticking with the front area of the store holiday campaign called with its scandal, in which it
ing more traction than free shipping with a $50 that is stocked with $1 to $5 “The Holiday Odyssey,” a equipped some of its cars
Wal-Mart’s. In August, Tar- minimum — the same as items and branding it under season-long tale that in- to evade U.S. diesel emis-
get raised its annual profit last year. The retailer is en- “Bullseye’s Playground.” For volves three kids, Target’s sions tests. The company
for the year and reported couraging online shoppers the holiday season, shop- mascot Bullseye and their has set aside 6.7 billion eu-
its fourth straight gain in whose orders fall below the pers will find gift wrap and quest to light a huge holi- ros ($7.5 billion) to pay for
revenue at stores open at minimum to pick them up stocking stuffers there. day tree. The campaign recalls, but analysts say the
least a year, a key industry at the store. In time for the winter holi- will be rolled out on TV and total costs will be much
figure. The results are evi- Target is bringing back free days, Target will have ex- on its website and will in- higher.
dence that CEO Brian Cor- shipping for the holidays — perts working the store to clude Lego and Ninja Turtle The company, based in
nell’s efforts to spruce up without any restrictions. It make sure the products are characters.q Wolfsburg, Germany, said
Target’s fashions and home in a statement that it will in-
decor are paying off. vest $600 million in Tennes-
Meanwhile, Wal-Mart an- see and reiterated plans
nounced earlier this month to build a new midsize SUV
that revenue for the current there starting from the end
fiscal year would be flat, of 2016.
down from its previous fore- Volkswagen Group of
cast for sales growth of 1 America CEO Michael
percent to 2 percent. And Horn said that “the clear
it now expects profit to fall commitment to the Chat-
as much as 12 percent for tanooga location confirms
next fiscal year as spend- our engagement in North
ing on e-commerce op- America and our confi-
erations and higher wages dence in the local team.”
squeeze the bottom line. The U.S. Environmental
This comes as Wal-Mart’s Protection Agency says
U.S. CEO Greg Foran is Volkswagen AG equipped
spearheading a major 482,000 diesel engine
overhaul of the stores that models with software that
includes basics like making disabled emissions controls
sure stores are cleaner and when cars were not on test
well stocked. stands. Up to 11 million cars
worldwide have the de-
ceptive software.
Volkswagen has apolo-
gized, suspended several
managers and hired a law
firm to investigate. q
