Target's Aggressive Discounting Will Pay Off

What the wise do in the beginning, fools do in the end. That quote sums up Target's (NYSE: TGT) new strategy to fix its bloated inventory.

While supply chain constraints have caused shortages of some types of products, Target and other retailers are facing the opposite problem. The value of Target's inventory soared 43% in the first quarter against a 4% rise in sales. Walmart reported a similar disconnect between inventory and sales growth.

Target is seeing strong demand for consumable products like food, beverages, beauty products, and household essentials. Consumers don't appear to be making abrupt changes to their spending patterns in these categories in the face of sky-high inflation.

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Source Fool.com