Shopping at Target is about to get better because the retailer is slashing prices to clear out amassed inventory ahead of the fall and holiday shopping seasons.
Target told their suppliers that they are cancelling orders especially in home goods and clothing.
“Retail inventories are elevated,” Michael Fiddelke, Target’s chief financial officer, told The Associated Press in a phone interview. ”And they certainly are for us, in some of the categories that we misforecast. We determined that acting aggressively was the right way to continue to fuel the business.”
Americans have changed the way they are spending their money, spending more on travel and eating out and not so much on their homes.
Sales of big TVs and small kitchen appliances have dwindled and Target has a large inventory and said must be marked down to sell.
Target is canceling orders from suppliers and slashing prices to clear out a bloated inventory. The moves follow a pronounced shift by American consumers, away from pandemic spending on such things as big TVs and small kitchen appliances. https://t.co/Z54NBtsGYw— The Associated Press (@AP) June 8, 2022