Target (TGT) CEO Brian Cornell said that shoppers pull back had not only affected sales of discretionary items but also decreased purchases of groceries in an interview aired by CNBC, on Thursday morning. He also said that the company has taken a cautious outlook for the year as it continues to prepare for the holiday season. Target is expected to report earnings on November 15.
Target CEO Brain Cornell was interviewed by CNBC’s Becky Quick. In the Thursday interview, he spoke about the decline in sales of discretionary items in the past seven consecutive quarters. He said that sales had decreased in terms of dollars as well as units for items such as toys and apparel.
What surprised a few was when he said, “But even in food and beverage categories, over the last few quarters, the units, the number of items they’re buying has been declining.”
Cornell detailed Target’s inventory challenges over the past few years. He said that the company had insufficient merchandise during the pandemic due to supply chain issues. Last year, Target had an excess of merchandise that was not selling as it was the wrong inventory.
He also said the company’s approach to planning inventory for this year had been “conservative” and that they would “lean into those big seasonal moments and play to win” and more.
Cornell also mentioned that shoppers tended to splurge during what he described as “seasonal moments” and mentioned Halloween and Mother’s Day as times when shoppers purchased more than usual.
Cornell also mentioned that he had taken the call to remove controversial merchandise that had been sold on Target stores during Pride month in June, although it would create more issues. He said that the call was taken “to prioritize the safety” of the team as store employees dealt with “very aggressive behavior” at that time.
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