Target flashes a recession warning: Shoppers are buying fewer clothes and more necessities | CNN Business

Target’s total sales ticked up 0.5% during its latest quarter from a year ago, the company said Wednesday. But digital sales fell, and the company said shoppers pulled back on discretionary purchases in what CEO Brian Cornell called a “very challenging environment” for consumers. Target’s\n \n sales at stores open for at least one year increased 0.7%, and the company said customers were spending more on food and essentials. Profit fell 5.8% in the quarter.

“The carefree shopping trip has been replaced by more focused missions where people set budgets and are less willing to deviate from them,” he said in a note to clients. Theft is growing Target also warned that losses, driven by shoplifting and organized retail crime, will reduce its profitability by more than $500 million this year compared with a year ago.

Ireland Ireland Latest News, Ireland Ireland Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Shoppers are pulling back at Home Depot | CNN BusinessConsumers are taking on smaller home improvement projects as higher interest rates and inflation take their toll.
Source: CNN - 🏆 4. / 95 Read more »

Why Home Depot's weak outlook could be a warning sign for Target earningsHome Depot signaled that consumers are pulling back on discretionary spending even during the busier spring season.
Source: CNBC - 🏆 12. / 72 Read more »

Walmart will report earnings before the bell. Here's what to watchThe discounter's report comes after Home Depot and Target reported weaker sales trends.
Source: CNBC - 🏆 12. / 72 Read more »