It is never good news when your company's trending hashtag is #TargetApocalypse.
In an era of social media whiplash and cutthroat competition from Amazon, Walmart and other mass merchandisers, Target Corp. took a hit to its image — and bottom line — after a difficult weekend in which it ran afoul of technical glitches two days in a row. Whether the impact will be lasting, experts say, depends on what happens next.
"Apocalypse? It wasn't quite that, but it still ain't good," said Robert Passikoff, founder of a New York brand loyalty research firm Brand Keys. "As the differentiation between retailers gets slimmer and slimmer, the expectations get higher and higher and it gets more dangerous to make a mistake."
On Saturday, cash registers at all 1,850 Target stores went down in the early afternoon for about two hours, leading to long lines and a social media firestorm. On Sunday, some stores were unable to process credit card payments for about 90 minutes.
The Minneapolis-based company said Monday it was experiencing no new problems, and reiterated its ongoing work to resolve the problems.
"We know many guests had a frustrating shopping experience in our stores this weekend," Target said in a statement. "For that, we are truly sorry. We never want to disappoint any guests and we're working tirelessly to ensure these issues don't happen again."
Akshay Rao, a marketing professor in the University of Minnesota's Carlson School of Management, said the relationship between customers and businesses "is one of trust." And it's a tenuous balance.
"If I shop Target 100 times a year, the one time something doesn't work is going to stand out," Rao said. "Negative information is far more available and impactful than positive information."