| March 14
March 14 Target Corp on Friday
acknowledged that a massive data breach last year has damaged
its reputation and business, and said that it does not yet know
how long the fallout will last.
Some 40 million payment card records were stolen from the
discount retailer, along with 70 million other records with
customer information such as addresses and telephone numbers,
during the 2013 holiday shopping season.
Target disclosed the breach in December, a few days before
Christmas, denting its revenues.
"We know our guests' confidence in Target and the broader
U.S. payment system has been shaken," Target said in its annual
report, filed with the U.S. Securities and Exchange Commission.
"We cannot predict the length or extent of any ongoing
impact to sales."
Congress is investigating the breach along with lapses at
other retailers, and credit card companies are pushing for
Target potentially faces dozens of class actions and action
from banks that could seek reimbursement for millions of dollars
in losses due to fraud and the cost of card replacements.
The retailer said it expects to dispute any such claims from
the payment card networks and would likely to seek settlements
in such cases.
The affected payment cards include Target's REDcard private
label debit and credit cards as well as other bank cards.
Target said it was worried the breach would lead some
shoppers to stop using its REDcards loyalty program, which
accounts for a growing percentage of its sales.
The company said it would speed up a $100 million
investment to equip the proprietary REDcards and all of its U.S.
store card readers with chip-enabled smart-card technology by
the first quarter of 2015.