Stressed budgets going into the holiday season has caused shoppers to pull back on all goods, including groceries, shared Target CEO Brian Cornell in an interview with CNBC, reports the news source.
Cornell added that the chain has posted seven consecutive quarters of declining dollar and unit sales on discretionary items. “But even in food and beverage categories, over the last few quarters, the units, the number of items they’re buying, has been declining,” he said.
This caused Target to cut its full-year sales and profit expectations in August, contrary to economists doubling back on calling the economic period a recession, and government data signaling a cooling inflationary period.
He outlined a top-down strategy shift to drive sales.
“We’ve taken a much more conservative approach in planning inventory this year,” he said. “But we’re going to lean into those big seasonal moments and play to win, when we know the consumer is looking for something that’s new, looking for affordability, looking for that special item for the holiday season.” Full Story
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Image: Target