Target cuts prices, cancels orders as online shopping slows down

Target reported a 52% drop in profit for the first quarter, citing an excess of inventory, especially home goods and clothing, as online shopping cools.

NEW YORK — Target is canceling orders from suppliers, particularly for home goods and clothing, and it’s slashing prices further to clear out amassed inventory ahead of the critical fall and holiday shopping seasons.

The actions come after a pronounced spending shift by Americans, from investments in their homes to money spent on travel, nights out for dinner and dressier clothes, a change that arrived much faster than major retailers had anticipated.

The speed at which Americans pivoted away from pandemic spending was laid bare in the most recent quarterly financial filings from a number of major retailers. Target reported last month its profit for the fiscal first quarter tumbled 52% compared with the same period last year. Sales of big TVs and small kitchen appliances that Americans loaded up on during the pandemic have faded, leaving Target with a bloated inventory that it said must be marked down to sell.

Why did Target stock drop?  Thank high gas prices, inflation

Target declined to give a dollar amount of merchandise orders that are being canceled and depths of the discounts.