Target’s 3Q profit drops 52% as shoppers force price cuts

By ANNE D’INNOCENZIO
AP Retail Writer

NEW YORK (AP) — An unexpected and potentially ominous pullback in customer spending ahead of the holiday shopping season pushed third quarter profits at Target down 52% after it was forced to slash prices for Americans who are feeling the squeeze of inflation. CEO Brian Cornell says sales weakened significantly in the weeks leading up to October 29, the end of the most recent quarter, with more customers refusing to pay full price and waiting for sales. That trend pushed quarterly profit far below the expectations of both Target, and Wall Street. The company’s stock tumbled 14% before the opening bell Wednesday and other big retailers are being dragged down as well.