Credit card use powers Target's 15% profit gain

  • Article by: DEE DePASS , Star Tribune
  • Updated: November 15, 2012 - 9:09 PM

Analysts say the use of Target's Redcard, which encourages repeat business, has even more room to grow.

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swmnguyNov. 15, 12 8:08 AM

It was sometime in 2007 that I heard Doug Scovanner laugh at an offer (I think it was from Chase) to buy Target's credit card portfolio for $13 Billion. What a difference a collapsing bubble makes. About $7 Billion, or over 50%.

It's a weird reality indeed when Target makes more profit from lending money to people to buy their merchandise (or anyone else's) than they make selling the merchandise itself. I don't think that's a sign of health in our economy, when everyone wants to be a bank except the bankers. I'm glad Target has finally sold.

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sek2undrstndNov. 15, 1210:47 AM

Thanks for working for me, Target employees. I do nothing and yet I'm still given money created by the employees simply because I had the money to buy some Target stock. Thanks again Target employees. Now get back to work and skip your lunch break. My dividends depend on it.

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mouthwashNov. 15, 1212:53 PM

To insinuate Target operates under a merit badge is like claiming Taco Bell has the best Mexican food simply because it is the largest Mexican food corporation.

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woodyagNov. 16, 12 7:31 AM

Sounds like they've let the Bean Counters take over management. Sell the credit card division? So more bean counters who care only about profits are in charge, at a nice distance. Yep, more quarterly profits. For a while. Lots of us shop at Target because- it started as a Minnesota company- a spin off of Dayton's. Local-ish. Minnesota nice. Now- its drifting off into "profit is everything" land, and I'm not so enthusiastic. And am likely to become more so. You know what would get my attention- and loyalty for years? How about - NO Black Thursday-Friday. Stay CLOSED- Thursday AND Friday, when everyone else is open- so your employees actually have a Vacation. And if you opened for the Holidays on Saturday morning- you'd be the only store with NEW bargains- and employees who were smiling and rested. You'd stand out. As? Compassionate, and Smart. But. Nah. It's The Quarterly Report, Stupid.

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