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While Target is a place where many of us go when we want to "treat ourselves", it also sells necessities. Similar to Walmart , you can get your shopping with your cleaning products and your seasonal items at Target, often at competitive prices. But now the CEO of the retailer Brian Cornell warn that buyers spend less in stores, including certain generally essential items. Read the rest to find out why buyers abandon the target.

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In a Interview of November 2 with CNBC Becky Quick , Cornell spoke of the drop in expenses in Target, not only with discretionary goods - which is probably planned - but also with necessities.

"They very carefully manage this budget and certainly put pressure on discretionary expenses, they buy less things," he said. "But even in the categories of food and drinks, during the last quarters, the units, the number of items they buy, has decreased."

Cornell did not explain why food and drinks exactly are decreasing, but he pivoted discretionary expenses for items such as interior decoration and toys, noting that dollars and units have decreased in this category during of the last seven quarters. In response to Quick's question on this subject representing a "recession of goods", Cornell agreed that the label is "really fair" and underlined the need to examine different categories and how the cost increase in the past years affects customers.

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Cornell explained that the situation is now very different from that during the Pandemic COVID-19 when customers were at home and the buyers without stopping.

The CEO added that Target was to "chase the demand" at the time, but they knew that "was not going to continue forever". By leaving there, as the pandemic restrictions were spread out, the demand has slowed down - and last year, Target was faced with an overabundance of the "bad inventory", reported CNBC. To avoid similar inventory challenges that can reach profits, Cornell said Target was more careful this year.

"We have adopted a much more conservative approach in stock planning this year," said Cornell during the interview, noting that customers still seem interested in buying items for various holidays. "But we are going to rely on these great seasonal moments and play to win, when we know that the consumer is looking for something new, looking for affordability, looking for this special article for the holiday season."

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Although Cornell has given new light on consumer spending, this is not the first time this year, it is aimed at obvious withdrawal.

During the summer, the target Sales were down 5.4% compared to the same period last year, marking the first time that the retailer experienced a decrease in quarterly sales in six years.

The reports prompted the objective to reduce its expectations of sales and profits in August - and during a profits call this month, Cornell again highlighted a decrease in expenses In "frequency categories" such as food, drinks and essential elements due to inflation. Interestingly, however, CNBC also stressed that Target made this decision in the midst of economists competing for a potential recession and pointing data on the slowdown in inflation.

According to CNBC, Target will publish its results in the third quarter on November 15.

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Although inflation has certainly hurt American consumers, the rise in retail flight has also presented huge problems for retailers. According to the National Retail Federation, in 2022, the industry lost about 112 billion dollars to retail crime. AE0FCC31AE342FD3A1346EBB1F342FCB

During his CNBC interview, Cornell - which was an open critic of the crime increase - explained how it had affected the target. The retailer is one of the many who have taken several preventive measures, in particular Lock the goods And Active fence of stores .

"We felt the need to use our voice to make this subject known," said Cornell, noting that he feels good in the progress made, including the Inform consumers It was passed earlier this year.

"Beyond the financial impact, I think there is a societal impact here," he said, also citing security problems for employees and customers. "You look at certain cities where the jobs have been closed: these jobs disappear, taxes have disappeared, but above all, that the local consumer does not have access to the goods they need. This has an impact on everyone in this community."

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