Target Experiences Post-'Frozen' Letdown20 May, 2015 By: Erik Gruenwedel
Target Corp. May 20 reported its hardline and entertainment category saw a mid-single-digit sales decline in the first-quarter (ended May 2) due in part to unfavorable year-over-year comparisons with the release of Walt Disney Studios Home Entertainment’s animated blockbuster Frozen.
The softness appeared to be the lone fiscal setback for the Minneapolis, Minn.-based retail chain, which has rebounded from a data breach last year involving consumer credit cards, and earlier this year announced it was exiting the Canadian market.
As previously announced, Target, which is a major retailer of DVD and Blu-ray Disc movies and TV shows, shuttered Target Ticket, an online platform offering transactional VOD and Digital HD releases.
With Disney’s Frozen selling more than 18 million discs and generating $335 million in revenue in 2014, the lack of a signature follow-up release undermined sales across categories.
“[The decline] reflected a very tough comparison with last year when we saw particularly strong sales from Frozen and elevated promotions drove sales in electronics,” Kathryn Tesija, EVP, chief merchandising and supply chain officer, said on the fiscal call without elaborating.
Meanwhile, Target continues to pursue new-release retail exclusives. It is selling Lionsgate’s Orange Is the New Black: Season Two with an exclusive “Glamour in the Slammer” featurette, while also offering an exclusive steelbook case of the Blu-ray combo pack for Warner’s American Sniper.