Target sales decline to start the year, but it sees improvement
Target is reporting a decline in quarterly revenue as still-stubborn inflation cuts into shoppers’ spending
NEW YORK — Target on Wednesday posted a decline in quarterly revenue as still higher prices on essentials cut into shopper spending.
The Minneapolis retailer also delivered profit results that were below analyst expectations and issued a muted profit outlook. It posted its fourth straight quarter of declines in comparable sales — those from stores or digital channels operating at least 12 months. But Target said it expects that it will get back to quarterly sales growth this quarter.
Shares slumped nearly 10% in premarket trading on Wednesday.
Target is looking for ways to reverse softening sales. On Monday, said it would cut prices on thousands of consumer basics over the next several months, from diapers to milk, in a bid to entice customers who are looking for deals.
And it's also trying to make shopping at Target more convenient and enjoyable to better compete with Walmart and Amazon.com.
Target announced a new paid membership program in April called Target Circle 360 which comes with unlimited free same-day delivery for orders over $35 and free two-day shipping for all orders. The annual $99 per year membership is getting a strong reception, the company says.
It's updating existing locations, building more than 300 new stores over the next decade, and also broadening store-owned brand offerings for more cost conscious customer choices.
Target is among a batch of retailers that have reported quarterly results so far, but it did not fare as well as Amazon and Walmart. Amazon, the nation's biggest online retailer, announced better-than-expected results for the holiday shopping period last month. Walmart
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