One of America’s biggest retail chains has cut a quarterly profit margin forecast that it issued only weeks ago and warned that it will have to offer deeper discounts to clear stock as inflation takes a toll on demand.
Target Corporation, which has stores in all 50 states, said it would mark down prices in the second quarter and would cancel orders with suppliers, strengthen parts of its supply chain and prioritise categories such as food and household essentials.
Soaring inflation is forcing people to change their shopping habits, catching many retailers off guard and forcing them to offer more discounts.
Target, along with Walmart, had reported a much steeper drop in quarterly profit in May than Wall Street analysts had expected, sending shockwaves