Target is canceling orders from its suppliers, particularly in home and clothing, while slashing prices of goods in a bold move to clear out mounds of unwanted inventory ahead of the critical fall and holiday shopping seasons.
The Minneapolis-based discounter announced the move Tuesday. It comes as shoppers shifted their spending in the past few months faster than Target and other merchants expected.
During the depths of the pandemic, shoppers sought casual clothes and home goods like furniture, but they are now returning to pre-pandemic routines and seeking dressier clothes and services. It marks a reversal from the past two years when retailers were scrambling to bring in goods that were clogged in the supply networks. That resulted in skimpy discounts.
Strategic Resource Group Managing Director Burt Flickinger is among the world's top retail analysts. He told KRLD News major retailers need to "get out of the Fred Flintstone and Barney Rubble stone ages" and offer more private-label and store brands on their shelves.
Flickinger said more than half the retail products sold in countries including the U.K., Canada and Australia are store-branded, while the number in the U.S. is closer to 20%.
Flickinger said Target is already a leader in private-label products, and that "Target will be the first to turn the corner. The simple solution is store brands and private-label because it will raise nutrition, raise the quality and cut the cost in half," he said.
Flickinger spoke Tuesday with KRLD's Chris Sommer.
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