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The objective has been venerated for a long time for its ability to bring buyers spend their money - With many people who claim that they always end up buying more than they wanted in the retailer stores. But now it seems that people can make shopping elsewhere instead, Target reporting a drop in sales for the first time in years. Read the rest to know why buyers can abandon the target.

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In a August 16 Press release , Target announced its results for its second quarter of the 2023 fiscal year, which ended on July 29. According to the report, comparable sales of the second quarter of Target decreased by 5.4% compared to the same era last year. The company said its sales of comparable stores had dropped by 4.3%, while its comparable digital sales dropped by 10.5%.

The total turnover of this quarter was 24.8 billion dollars, which reflected a "total drop in sales of 4.9%" for the retailer. In a declaration accompanying the press release, Brian Cornell , president and chief executive officer of Target Corporation, admitted that these results show "softer than expected sales" for Target.

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While many retailers have accustomed themselves to lower sales in recent years, Target has apparently been immune. In fact, it is the first time that the company has seen a Lower quarterly sales In six years, the Associated Press reported. And now Target is not convinced that this will see an increase in sales for the rest of the 2023 exercise, at least.

"Given the recent sales trends, the company has reduced its expectations of sales and profits of the full year," said Target in its communication. "The company now provides for comparable sales in a wide range around a mid-chiffre drop for the rest of the year."

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During a August 16 profit call With analysts, Cornell said that several factors forced consumers to withdraw from discretionary expenses from retailers like Target. AE0FCC31AE342FD3A1346EBB1F342FCB

"This is in particular the impact of inflation in frequency categories, such as food and drinks and essential elements, which makes these categories absorb a much higher part of consumer budgets", a- he said.

Regarding additional funds, consumers now choose to spend their money on experiences involving trips and entertainment, rather than on products purchased in stores, according to the CEO of Target.

"The guests are in concerts," Cornell told journalists in a separate media call on August 15, by the AP. "They go to the movies. They saw Barbie . They appreciate these experiential moments and they shop very carefully for discretionary products. ""

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The decrease in discretionary expenses has been a major factor contributing to the recent drop in target sales. More than 50% of the annual sales of the retailer come from discretionary items, such as toys, fashion and electronic gadgets, the AP reported.

But when the gains call, target CFO Michael Fiddelke admitted that the controversy surrounding the pride collection of the company also played a role in its drop in sales for the second quarter.

"Traffic and higher trends were affected by the reaction to our pride assortment, which was launched in mid-May," confirmed Fiddelke.

Cornell told analysts that many members of the Target store team had faced a "negative reaction from guests" to its proud exhibitions this year - despite being something that the company presented For more than a decade. Consequently, Target has removed some of its pride products from certain stores to try to fight against threats and aggressive actions. But that created even more problems for the company, because some buyers then called for a boycott for withdrawal.

"Specific in the months of pride and heritage, we focus on building assortments that are festive and joyful with great relevance, being aware of the calendar, placement and presentation, leading segmentation and taking advantage of Our digital experience, and reconsidering the mixture of own brands, national brands and external partners within these assortments, "said Cornell. "Our goal is to ensure that we continue to celebrate special moments for our guests, while recognizing that, every day, for millions of people, they want Target to serve as a refuge in their daily life."