Target’s online game is on target
An aggressive campaign at Target to let customers do more online is paying off.
The retailer exceeded first quarter expectations on just about every level, saying the same day services it’s rolled out, including picking up online orders at the store, drove more than 25% of comparable sales growth. That measure, which includes sales at stores open at least a year and online sales, rose 4.8% on top of traffic growth of 4.3%.
Online sales soared 42% and the company says it continues to take market share across all areas, from fashion to toys.
The just-ended quarter showed a growing gap between winners and losers in the retail sector. Big box giants like Target and Walmart are making headway on online leader Amazon as they expand online and modernize stores. Offprice chains like T.J. Maxx are also doing well in a retail environment that has changed drastically in the last decade with the emerging dominance of Amazon.
It’s a different story at department stores like J.C. Penney, Kohl’s and Nordstrom, which are being squeezed from all sides. Quarterly reports from all three this week were downbeat and their shares were pounded.
“I think what we’re seeing right now is the bifurcation of winners and losers,” Target’s CEO Brian Cornell
“One thing is clear, this is not 2014,” Gilmore said.
The UAW lost the 2014 vote by a margin of 712 to 626. In 2015, a smaller group of maintenance workers won a union vote at the plant by 108-44.
Last month after waiting more than three years for the courts and NLRB to decide on the validity of the union for the maintenance workers, the UAW disclaimed the 2015 election and sought NLRB action to revoke the unit so a new election of all maintenance and production workers could take place.
VW had claimed that there were issues pending before the NLRB related to the 2015 vote that must be decided before the board could entertain a new UAW petition.
On Wednesday, the NLRB granted in a split decision the request by Volkswagen to dismiss the original petition.
“The Employer’s request for review of the Regional Director’s Order Deferring Ruling on Motion to Dismiss Petition is granted as it raises substantial issues warranting review,” said the NLRB. “On review, we direct the Regional Director to dismiss the petition.”
The UAW criticized the NLRB decision, but noted that it allowed Chattanooga workers to quickly file another petition though it created a delay in the process.
“Volkswagen has continued to use legal games to aggressively deny its workers the right to vote for years,” said Rothenberg. “It’s ridiculous and shows how broken the rights of workers are under our labor laws.”
Maury Nicely, an attorney for the anti-UAW group Southern Momentum, said the decision by the NLRB vindicated VW’s earlier stance.
“What we’ve been hearing for weeks is ‘Let them vote. Why is VW standing in the way,’” he said. “VW has been saying the UAW hasn’t done this correctly. The UAW tried to blame VW. This is a vindication of Volkswagen.”
Nicely said that either the UAW “knew it wasn’t supposed to do this and did, or it had no idea. It calls into question why anyone would want to be represented by them.”
Volkswagen said that the NLRB agreed with the company’s position, found that the petition was not filed properly, and ruled that “any delay is solely due to [the Union’s] having filed its petition” prior to resolution of the maintenance-only unit issue.
“The NLRB’s decision today will allow us to proceed in a way consistent with board law as well as our one-team approach. We have taken a neutral position on the issue and will continue to do so,” the company said.
Contact Mike Pare at mpare@timesfreepress. com or 423-757-6318. Follow him on Twitter @MikePareTFP.