Target’s pre-Christmas database breach not only affected the retailer’s fourth-quarter same-store sales, but also contributed to plummeting shopper penetration post-holiday, according to a new report by Kantar Retail.
Target announced on Wednesday a decline in fourth-quarter sales and earnings; however, executives expressed optimism as they plan for the new fiscal year and work to restore consumer confidence following the data breach.
John Mulligan, EVP and CFO of Target, said the retailer is deeply sorry for its late 2013 data security breach and is aware that consumer confidence in the company is shaken; his comments came during a Feb. 4 testimony before the Senate Judiciary Committee.
Target reportedly said a data breach at an unidentified vendor led to hackers obtaining phony credentials that allowed them to gain access to Target’s systems and steal the information for 40 million credit and debit cards, as well as the personal data of about 70 million consumers.
Target plans to carry on its Canadian expansion this year with nine additional stores, the majority of which will open in Ontario, although the retailer plans to open single stores in Quebec, Manitoba, Alberta and British Columbia.
In light of the changing healthcare landscape due to healthcare reform, Target is discontinuing part-time health insurance coverage for its stores’ part-time associates, beginning April 1, according to a report in Target’s Bullseye View.