Target CEO Reports Drop in Customer Spending Even on Grocery Items Over Seven Consecutive Quarters

Retail giant's sales dip nearly 5% to $24.8 billion in Q2 2023, with CEO noting declines in discretionary and necessary purchasing, and increased theft incidents furthering financial strain; company reduces sales and profits outlook.

• Target CEO Brian Cornell disclosed that customers have been reducing their spending on a wide range of items, including groceries, over the last seven consecutive quarters.
• Despite suffering from a lack of inventory in 2021 and surplus of unneeded inventory in 2022, Target plans to invest in inventory for 'seasonal moments' like Halloween and Mother's Day to bolster sales.
• Falling sales are not only attributed to reduced customer spending but also a significant increase in retail theft incidents, which rose 120% between January and May and on some occasions involved violence or threats.
• Disagreement exists among industry experts and insiders about whether there's currently a retail theft 'epidemic', but Cornell has called for heightened awareness of this issue at national, state, and local levels.
• In Q2 2023, Target's sales dropped nearly 5% to $24.8 billion, contributing to a downward revision of the financial outlook for the full year.

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