Target Says It Will Lower Prices On Products Due To Unwanted Inventory

MINNEAPOLIS — Minneapolis-based Target is delivering some good needs to customers amid record inflation.

Target shoppers in Minnesota and across the country may see lower prices as the retail giant attempts to clear out excess inventory while adapting to new shopping habits fueled by the growing inflation.

Target's first-quarter profit took a big hit from rising costs, despite strong sales, the Associated Press reported.

The retail chain — which has stores in Minnesota — is making changes to align with the changing buying habits of its customers, including marking down products, canceling orders, and raising some prices to align with "unusually high" transportation and fuel costs, the Minneapolis-based company reported.

Shoppers continue to purchase groceries and other household staples, as well as beauty products, according to the company, but Target intends to plan more conservatively regarding non-essentials such as home goods and decor, citing rapidly changing trends since early 2022.

The company is revising sales forecasts, promotional plans and cost expectations, and will also add five distribution centers over the next two years.

Target, which had a 52 percent drop in year-over-year first-quarter profit, isn't the only company scrambling as consumers who are weary of the coronavirus pandemic shift from investing in their homes to spending on travel and dining.

Macy's, Kohl's and Walmart all reported rising inventories last month, according to the Associated Press, which noted inflation is another factor limiting what shoppers purchase.

"Target's business continues to generate healthy increases in traffic and sales, despite sustained volatility in the macro-environment, including shifting consumer buying patterns and rapidly changing operating conditions," Target Chairman and CEO Brian Cornell said in a news release Tuesday.

Despite a second-quarter operating margin rate projection of around 2 percent, Target expects that number will rise to around 6 percent in late 2022, exceeding the company's average pre-pandemic fall season performance.

Patch editor Anna Bybee-Schier contributed to this article.