Inflation is breaking records — and retailers’ forecasts.
Consumer behavior has shifted so swiftly since the beginning of the year that major retailers are faced with clearing excess inventory and recalculating financial expectations as prices continue to rise. Target is a case in point.
In June, the retailer released an update warning of lower profit margins as purchase patterns shifted and inventory had to be right-sized. Inflation drove high expectations for Target’s “frequency categories” including food, beauty and household essentials, but more conservative estimates on discretionary categories like home, “where trends have changed rapidly since the beginning of the year.”
