Target flashes a recession warning: Shoppers are buying fewer clothes and more necessities | CNN Business

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Target flashes a recession warning: Shoppers are buying fewer clothes and more necessities | CNN Business
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Shoppers are pulling back at Target, Home Depot and other major chains as they face pressure from higher prices and borrowing costs

Target’s total sales ticked up 0.5% during its latest quarter from a year ago, the company said Wednesday. But digital sales fell, and the company said shoppers pulled back on discretionary purchases in what CEO Brian Cornell called a “very challenging environment” for consumers. Target’s\n \n sales at stores open for at least one year increased 0.7%, and the company said customers were spending more on food and essentials. Profit fell 5.8% in the quarter.

“The carefree shopping trip has been replaced by more focused missions where people set budgets and are less willing to deviate from them,” he said in a note to clients. Theft is growing Target also warned that losses, driven by shoplifting and organized retail crime, will reduce its profitability by more than $500 million this year compared with a year ago.

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