Placeholder while article actions loadTarget warned Tuesday that it had far too much inventory and would have to drop prices, cancel orders and cut its profit outlook to clear out the excess. A drop-off in consumer spending could signal that higher costs are gnawing at the nation’s economic health. Target set off alarms three weeks ago — its shares tumbled more than 25 percent — after reporting a 52 percent drop in first-quarter net profit. AdvertisementLindsey Bell, Ally’s chief markets and money strategist, notes that while consumers are continuing to spend, they are shifting from goods to services. It also is adding “incremental holding capacity” near U.S. ports to make sure it can handle a future spike in inventory.

Source: Washington Post June 08, 2022 14:04 UTC