Consumer
Target’s Slow Rebound Frustrates Investors, Sends Shares Falling
- Pressure is mounting for CEO Brian Cornell to rejuvenate sales
- Competitors Walmart and Costco are experiencing sales growth
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Target Corp. investors are losing patience with the retailer’s turnaround plan, as its chief rival Walmart Inc. continues to gain ground.
Target cut its full-year profit outlook Wednesday after a disappointing quarter, sending shares down more than 20%. Executives said shoppers are spending less on nonessential items like clothes and home products, and the company held onto more inventory ahead of the US port strike, leading to unexpected costs.