Target’s profit sinks after it cut prices to clear inventory

By ANNE D’INNOCENZIO
AP Retail Writer

NEW YORK (AP) — Target has reported solid sales for the fiscal second quarter but its profits plunged nearly 90% because it slashed prices to clear inventories of clothing, home goods and other discretionary items. The weaker-than-expected profit came two months after Target warned it was canceling orders from suppliers and aggressively discounting because of a pronounced spending shift by Americans that left the Minneapolis-based discounter with bloated inventory. Like many retailers, Target has been blindsided by consumers’ lightening-speed switch from spending on pandemic-inspired home items, like TVs and small kitchen appliances, to investing on experiences. Moreover, surging inflation is forcing shoppers to focus on basic necessities.