Target (TGT) Has To Be Competitive With Walmart, Says Jim Cramer As He Discusses Layoffs

We recently published Jim Cramer’s 12 Fresh Stocks & Quantum Computing Trading Strategy. Target Corporation (NYSE:TGT) is one of the stocks Jim Cramer recently discussed.

Target Corporation (NYSE:TGT) announced last week that it would lay off 1,800 corporate employees as part of a restructuring effort ahead of the firm’s new CEO taking over. Cramer discussed the announcement:

“[On layoff announcement] Yeah I think that we’re in this mode, someone’s going to say it’s AI, it’s not. I think these are all pretty discrete. The Target for instance which was pretty, pretty big. I think that’s an opportunity because the new guy comes in, brooming a lot of, what I guess would be overhead. I always like to think of these people as doing something. You got a 12 PE on Target, that’s gotta go up. And one way they can do it is to sell more. The other way they can do it is to be able to have better cost control. Because when I talked to Brian Cornell I would go into the stores with him and I would say, this stuff is too expensive. I think they have too much overhead. They are not competitive with Walmart. And they have to, at least on some things. And it’s not enough that they have very good house brands, which they do. I think that you don’t want to be irrelevant. And Target, because it’s little higher cost, you don’t want it to go down, be the Kohl’s hole. It could happen.”

Copyright: jirsak / 123RF Stock Photo

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Disclosure: None. This article is originally published at Insider Monkey.