Target price reduction, cancel supplier orders Walmart and Macy’s are also struggling to get rid of too much stock. (DTM)
After months of waiting for product delivery, Target now has a glut of certain merchandise. The company is now trying to get rid of products it doesn’t need.
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Target will cut prices on some products and cancel orders for others it had submitted, all in an effort to reduce a growing inventory, the Associated Press reported.
Items expected to go on sale include televisions, outdoor furniture and kitchen appliances, the Star Tribune reported.
The sales will help clear the space needed to better sell the goods, the newspaper reported.
Inventories from February to April increased by 43%.
Demand for items such as furniture was high during the pandemic as people stayed home, but has now eased. Items also take up a lot of space in warehouses and stores.
The Wall Street Journal headlined an article last month, “America’s Stores Have Too Much Bad Stuff.”
Shoppers are now looking to get out of the house and spend money on trips and nights out, such as buying dressier clothes, makeup and groceries, the AP reported.
Target did not provide details on discounts or canceled orders, the AP reported.
Target officials said the move came after hearing competitors’ concerns about having too much of certain products. Target is making the cuts now ahead of the back-to-school and holiday shopping seasons and retail outlets need space not taken up by large items, CNBC reported.
Walmart is in a similar situation, CNBC reported. The retailer said it has about 20% of merchandise it wishes it didn’t have. Walmart CEO John Furner said it would take us “a few quarters to get back to where we want to be.”
Walmart also said people are spending more on food than general merchandise as the cost of basic necessities rises, Fox Business reported.
It’s unclear if Walmart will take a similar route and offer similar items to Target at a deep discount this quarter. But Walmart has already started “being aggressive with throwbacks in apparel” in the first three months of the year, according to Fox Business.
Macy’s is also dealing with excess inventory in some departments and cutting prices on some items, Fox Business reported.
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