Target's Discounting Plan Ends Up Cutting Its Stock Price as Well
- Investors irked by potential threat to profit margins
- Shares of Wal-Mart also tumble in wake of Target announcement
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Target Corp.’s announcement that it was cutting prices on thousands of products led to one unintended discount: a nearly 5 percent stock drop.
The retail chain said on Friday that it spent months examining its products and promotions and was permanently lowering prices on everything from breakfast cereal to razor blades. The announcement was meant as an enticement to customers, but it gave investors the chills.