Target’s sales declined in 2023 for the first time in years. Promoting cheaper products puts it in direct competition with Walmart.
General merchandise retailer Target faced its first full-year decline since 2016. Its first decline in seven years, 2023 sales dropped by 1.7% from 2022, and in-store sales fell 3.7%.
“Q4 earnings report saw gains that helped offset the decline in sales, increasing 5.1% in 2024,” article by Alex Vuocolo of Retail Brew.
The decline in sales has been attributed to customers cutting back on non-essential spending. High prices have turned away many of Target’s middle-class shoppers, harming Target’s sales.
Furthermore, sales have declined for three consecutive quarters, according to an article by Nathaniel Meyersohn of CNN.
Target has since tried to promote its cheaper products to circumvent the decline.
The outlook is mixed for the retailer. While Target predicts a slow 2024, they also believe sales will increase 2% this year.
Target still needs to compete with Walmart, which could be hard to beat as it is historically known for its low prices.
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