Target Cuts Massive Amount of Orders – A Sign of Things to Come?!
(DailyVantage.com) – During the pandemic, with much of the world on lockdown and travel down to a bare minimum, people spent money on home goods and more comfortable clothing. With restrictions lifted, consumers have significantly shifted where they’re spending their money. One major retailer is making changes to its inventory to reflect these changes.
On Monday, June 6, Target Chief Financial Officer (CFO), Michael Fiddelke, said the company “misforecast” orders in a few categories, which led to elevated inventory levels. As a result, the retailer is now marking down products to clear out inventory and make room for newer products. It also canceled orders from some suppliers due to low sales.
The issues of lost profits and bloated inventory are a sign of the impending post-COVID recession that is about to sweep the nation! https://t.co/iyCYyv6dFH
— Michael Robison (@MichaelRobison) June 7, 2022
Televisions, kitchen appliances, and other home goods are among Target’s markdowns. Consumers have shifted their spending to the entertainment sector, including dining out and buying dressier clothes for a night on the town.
Some view the price markdowns as a sign of things to come, with experts warning a recession is possibly looming. Yet, Fiddelke says it’s due to changing times, and, for Target, it will be business as usual. The company expects revenue growth this year despite a poor second-quarter showing due to losses it will incur from the write-off of discounted goods. The company states it’s meeting goals to maintain or grow its market share.
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