Amidst a time when discounts had become rare, due to supply constraints and inflation, retail giant Target is all set to offer major discounts on a number of its commodities and products. Reports say that the retailer is stuck with too much of home décor and too many electronic items that include televisions. So in order to clear the excess stock that it has, the company is offering discounts. Target in an announcement on Jun 7, 2022 said that it would soon be adding prices to some of the products that have a higher price tag that the consumers had earlier pulled back from buying.
The company has also said that it will also be cancelling the pending orders from its suppliers. The recent move marks a complete reversal of what has been happening since a couple of years in recent times. In recent times the consumers mostly faced inflated prices on products due to supply constraints and many times they could not find what they actually wanted. There were also times when the stores were selling merchandise at full prices to the consumers who had saved their earnings when they remained at home during the initial days of the pandemic. When the lockdowns eased, the consumers remained eager to spend on their homes and wardrobes.
However, in recent times, the pattern has changed due to the inflation that was never seen before in decades. The patterns also changed when the federal government stopped paying the pandemic stimulus payments. Not many consumers are going for high end purchases and are preferring more with necessities like home staples, groceries and self-care products.
Neil Saunders, an analyst from GlobalData Retail in a note towards the clients on June 7, 2022 said that the inventory needs to be cleared out and that has to be done with the help of discounts. Saunders added that it would help to rebalance the stock levels and would make more room for the categories that are high on demand.
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