Watch for big sales from Target starting soon.

Target warned investors Tuesday that its profits will take a short-term hit, as it marks down unwanted items, cancels orders and takes aggressive steps to get rid of extra inventory.

The retailer slashed its profit margin expectations for the fiscal second quarter to account for a wave of goods winding up deeply discounted or on the clearance rack. Shares were down nearly 4% midday Tuesday.

“We thought it was prudent for us to be decisive, act quickly, get out in front of this, address and optimize our inventory in the second quarter — take those actions necessary to remove the excess inventory and set ourselves up to continue to be guest relevant with our assortment,” CEO Brian Cornell said in an interview with CNBC.

By taking swift action, Cornell said Target can fend off further pain and make room for merchandise that customers do want, such as groceries, beauty items, household essentials and seasonal categories like back-to-school supplies. He said the company’s stores and website are seeing strong traffic and “a very resilient customer,” but one who no longer shops popular Covid pandemic categories.

How big of a bargain can one get on a mop?

(I never considered Target for big ticket items. Do others?)

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Hurts like a bastid...

I believe that part of this is items that were ordered pre supply chain issues. Much of which is now being received. In many cases, people aren't buying this stuff as they see the economic writing on the wall. Not just a Target issue.

Many of my clients are figuring out what to do with all the product that they ordered that should have been delivered 12 to 24 months ago. It's now showing up and either isn't for the correct sales season or isn't high priority for their customers.

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macphanatic
I believe that part of this is items that were ordered pre supply chain issues. Much of which is now being received. In many cases, people aren't buying this stuff as they see the economic writing on the wall. Not just a Target issue.

Many of my clients are figuring out what to do with all the product that they ordered that should have been delivered 12 to 24 months ago. It's now showing up and either isn't for the correct sales season or isn't high priority for their customers.

This is an interesting problem that I hadn't thought about/read about until you posted.

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$tevie

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macphanatic
I believe that part of this is items that were ordered pre supply chain issues. Much of which is now being received. In many cases, people aren't buying this stuff as they see the economic writing on the wall. Not just a Target issue.

Many of my clients are figuring out what to do with all the product that they ordered that should have been delivered 12 to 24 months ago. It's now showing up and either isn't for the correct sales season or isn't high priority for their customers.

This is an interesting problem that I hadn't thought about/read about until you posted.

I remember telling my husband this was going to happen.
I said, all that stuff sitting on the boats and in the pipeline is going to hit like a dam breaking, at some point.
Guess that point is now.

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Roswell, GA (Atlanta suburb)

Yup. Deflation incoming!

But what if I don’t need anything? I’m gonna get screwed out of really big savings!

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$tevie

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macphanatic
I believe that part of this is items that were ordered pre supply chain issues. Much of which is now being received. In many cases, people aren't buying this stuff as they see the economic writing on the wall. Not just a Target issue.

Many of my clients are figuring out what to do with all the product that they ordered that should have been delivered 12 to 24 months ago. It's now showing up and either isn't for the correct sales season or isn't high priority for their customers.

This is an interesting problem that I hadn't thought about/read about until you posted.

Think about a clothing brand. They typically have from 4 to even 6 product seasons. 4 makes sense, more than that is a bit confusing but some have 5 or 6. The summer season would already be out of the warehouses and fall merchandise would already be in the warehouses being prepped to ship out. These companies are receiving product based for seasons that they normally wouldn't be warehousing. And in some cases they have multiple off seasons worth of product arriving. There's now a shortage of warehouses, sea containers, etc. Add in the fact that they've already paid for this stuff, have to pay to warehouse it for several more months to introduce it in to the stream at the appropriate time; its a real mess. It's driving up costs that they may not recoup. This isn't just applying to clothing, but everything seasonal.

The World Bank just issued a report where they are predicting a world-wide 1970’s style stagflation.
Time to stock up on cash…

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richorlin

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richorlin
The World Bank just issued a report where they are predicting a world-wide 1970’s style stagflation.
Time to stock up on cash…

Tried that but came up a dollar short and a day late. I did manage to store up a small pile of Bitcoin under our bed but my wife vacuumed up the USB drive.

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Saint Cloud, Minnesota, where the weather is wonderful even when it isn't.