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Retailer Target still trying to recover from data breach in 2013

Target continues to struggle to win over consumers, with profits and customer retention sliding during its most recent quarter, the company confirmed.

Published Thu, May 22 2014 11:44 AM CDT   |   Updated Sat, Aug 8 2020 10:29 AM CDT

Popular retailer Target is struggling to win over customers following its major data breach in late 2013, with first quarter profits falling 16 percent. Through its first fiscal quarter, which ended on May 3, customer transactions also fell 2.3 percent when compared to the previous quarter - and the previous quarter saw customer transactions already drop 5.5 percent.

Retailer Target still trying to recover from data breach in 2013 | TweakTown.com

"We're in a place when it comes to the data breach where we don't have visibility yet to potential third-party liabilities and operating expenses they've incurred," said John Mulligan, Target interim CEO and chief financial officer.

It's going to be a continued uphill battle for Target to convince customers to give the retailer another try - as brand trust clearly took a hit. This is a serious warning for other retailers, to ensure their customer data is secure, as consumers are growing weary of the sheer number of data breaches and cases of identity theft due to lackadaisical security protocols. Target executives were reportedly warned about the threat of a security breach, though did nothing to change it.

NEWS SOURCES:cnbc.com, abcnews.go.com

An experienced tech journalist and marketing specialist, Michael joins TweakTown looking to cover everything from consumer electronics to enterprise cloud technology. A former Staff Writer at DailyTech, Michael is now the West Coast News Editor and will contribute news stories on a daily basis. In addition to contributing here, Michael also runs his own tech blog, AlamedaTech.com, while he looks to remain busy in the tech world.

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