A half year has now passed since the enormous cyber attack that effected Target all over the United States, and the retailer is still unsure about how big the financial hit is going to be.
Currently, the credit card companies are investigating their exposure to the breach. This examination, however, will take several months to be completed which will not allow Target to properly gauge the costs until the third quarter.
Target reported, in the first quarter of 2014, a total of $26 million of expenses, $18 million of net expenses along with an expected $8 million in insurance reimbursement.
According to Program Business From Neilson Marketing Services, due to the breach, Target’s income has dropped 16% to $418 million for its fiscal first quarter from a year earlier.
Although the expenses that Target is dealing with due to the breach is immense, interim president and CEO John Mulligan, stated in a conference call, that the company is very confident that although they are unsure of the exact expenses it will face, the company has the financial strength to move past the impacts caused by the breach.
Due to the breach, Target has come up with numerous strategies to help earn back the trust of its customers.
They are currently supporting EMV-chip credit and debit cards ahead of its earlier schedule, and also entered negotiations with MasterCard to offer a chip and PIN version of its REDcard. Target has also sped up marketing programs and discount offers.
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