Last week, Target reported a double-digit decline in electronics sales, a big factor in its quarterly sales slide. Then on Tuesday, Best Buy, the nation's largest electronics chain, reported a surprising sales bump.
The very disparate results raised a number of eyebrows -- including over at Target's headquarters.
Speaking at a local investors conference this morning, Target Chief Financial Officer Cathy Smith brought it up herself and gave props to Target's Minnesota neighbor.
"We're sitting here saying, 'Gosh, our electronics assortment is not where it needs to be. We're not seeing the innovation in the categories.'" she said. "And then Best Buy -- I'll give this one to them. They had a good quarter."
She noted in passing that the two chains have different assortments. (Best Buy, for example, has a big appliance business which has helped it weather the downward spiral in smartphones.)
"But it doesn't matter," she said. "We still have some work to do."
She said Target has been increasing its assortment in up-and-coming categories such as virtual reality and the Internet of things and will continue to do so.
Smith also hinted that Target is considering shrinking the physical space it dedicates to electronics in its stores since electronics sales are increasingly moving online. "So what is the right footprint in our stores?"
