1 New Reason to Buy This Retailer

Before you go, we thought you'd like these...
Before you go close icon

Target  has had a rough start to 2013. Sales and earnings came in lower than the company expected this past quarter. And the company expects the rest of the year to be soft as well. However, the retailer has notched good results with its loyalty-card program, which bodes well for future sales gains.

In the following video, Fool contributor Demitrios Kalogeropoulos argues that the loyalty program could work just as well for Target as it is has for retailers such as Amazon.com and Costco , which have pulled huge revenue gains from their successful membership services.

The retail space is in the midst of the biggest paradigm shift since mail order took off at the turn of last century. Only the most forward-looking and capable companies will survive, and they'll handsomely reward investors who understand the landscape. You can read about the 3 Companies Ready to Rule Retail in The Motley Fool's special report. Uncovering these top picks is free today; just click here to read more.

The article 1 New Reason to Buy This Retailer originally appeared on Fool.com.

Fool contributor Demitrios Kalogeropoulos owns shares of Costco Wholesale. The Motley Fool recommends and owns shares of Amazon.com and Costco Wholesale. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Read Full Story

People are Reading