Target's Turbulent Path: Declining Sales and DEI Controversy

Target announced a revised annual sales forecast Wednesday after experiencing an unexpected decline in quarterly same-store sales. The downturn is attributed to concerns over inflation and the economy, exacerbated by the U.S. trade war under President Trump. The company's change in diversity policies has also stirred customer discontent.

GlobalData managing director Neil Saunders criticized Target's current performance, noting a series of missteps that have damaged the retailer's reputation. Analysts expected a sales increase, but Target now predicts a decline. This highlights the pressure faced by American consumers, juxtaposed with Walmart's steadier position despite tariff challenges.

Target is attempting to mitigate tariff impacts by sourcing more products domestically and expanding sourcing to other Asian countries. CEO Brian Cornell has acknowledged the role of reversed DEI policies in current performance but could not quantify the impact. This comes amid ongoing consumer boycotts due to the policy shift.

(With inputs from agencies.)