Why Bad News For Target's Bottom Line Is Good News For You
Target is a staple for household shopping needs, providing customers with everything from home goods to entertainment, clothing, food, and beauty products. Now, the retail giant is preparing to feel the effects of a volatile economy.
According to a recent Wall Street Journal article, Target corporation is expecting falling profits to drop due to too much stock and not enough purchases. Inflation has hit the United States hard over the last few months, and consumers are tired of doling out money on comfort items. People are beginning to save their funds for fuel, which has skyrocketed in cost during 2022, and food. During the pandemic, shoppers were scooping up home items, electronics, and various other goods with money provided by the government. According to ABC News, during the 2020 lockdown, the company's online sales grew by just under $10 billion, thanks to their accessible inventory when shopping in-store was nearly impossible.
Their drop is your gain
The store's profit drop is expected to be a huge gain for consumers, who will benefit from more discounted stock and promotions on less in-demand items. According to the Wall Street Journal, the company plans to cancel incoming orders to avoid overloading the stores with unwanted merchandise. They also plan to slash prices to get rid of excess stock.
Target's top-selling items have transitioned over the last few months. Over the pandemic, people purchased more comfort items, such as patio furniture, small appliances, and clothing. Now, the store expects increased demand from the beauty, food, and beverage departments. In response, they plan to discount or offer promotions on home goods to make room for more popular items that shoppers need. Now is the time to shop those sales and take advantage of the stock overages. If you're in the market for new home items, it's a good time to stop at Target and use the discounts to your advantage while they're available.