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Target’s comparable sales decreased 5.4 percent in the second quarter as customers spent more money on necessities like food, cosmetic products, and essentials than on frivolous items.
The retailer said in a news release issued on Wednesday that it expects sales to drop for the remainder of the year and would therefore lower its profit projection for the year.
The company’s financial results for the second quarter, according to Target CEO Brian Cornell, “clearly demonstrate the agility of our team and the resilience of our business model,” he said in a statement.
“We saw better-than-expected profitability in the face of softer-than-expected sales,” he added.
The team was able to immediately react to quickly-changing topline trends throughout the second quarter while continuing to focus on the guest experience thanks to a much-leaner inventory position than a year ago, he said.
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CEO Reiterates Target’s Support for Heritage Celebrations
A “cautious approach to planning” will be used by the business as it prepares for the forthcoming fall season, he added. In a media call with reporters, Cornell said that rising costs for food and other necessities have caused consumers to make other expenditure reductions.
Cornell talked about the negative feedback the business received after releasing Pride month goods and that the business has taken note of it.
In response to questions from the media, Cornell said, “We’ll continue to celebrate Pride and other heritage moments as part of our commitment to support a diverse team and guests.”
To make sure we’re staying in touch with our customers and their expectations of Target, we’re implementing what we’ve learned as we navigate an operating and social environment that is always evolving.
Target first came under fire for its LGBTQ initiatives in May, when the retail giant announced that it had withdrawn some Pride month goods from its shops due to rising customer backlash and worries for the safety of its employees.
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Source: thehill.com/business
