Target and other big-box retailers stocked up on a wide array of merchandise such as electronics and furniture throughout the pandemic to respond to red-hot consumer demand.
But many shoppers in recent months have altered their purchasing choices in response to the fastest jump in inflation in decades and the end of federal government pandemic stimulus payments.
Consumers are making fewer high-end purchases and buying more necessities like food, household staples and self-care items.
On Tuesday, the company said it needed to respond more aggressively.
The steps will dent the retailer’s profit estimates for the year, the company said.
Heading into Tuesday, Target’s stock was down 31% for the year, and shares dropped 2% in early trading following the unexpected announcement.