Target Plans to Cut Prices Due to Excess Inventory
After a long period of supply chain issues and empty shelves across multiple departments, Target is now experiencing a supply issue of a different kind.
Target is now dealing with excess inventory in categories like home goods, clothing, and electronics. As a result, the retailer has announced that it will be taking drastic steps to reduce its excess inventory before the fall and holiday shopping seasons begin.
To this end, Target has reportedly been forced to cancel orders from its suppliers. It’s also cutting prices on the excess merchandise that’s already in-store and gathering dust on warehouse shelves.
Target says that these actions are necessary due to a change in the way Americans are spending their post-pandemic money.
During COVID, consumers were investing in their homes, since they were spending more time there. Now, Americans with disposable income would rather spend it on experiences like travel, restaurant meals, and other things they missed during the pandemic.
As inflation continues to crunch the average shopper’s budget, customers who are still spending their money at Target are focusing more on essential items like groceries and personal care items. While this spending shift was expected to occur eventually as a result of record inflation, it’s happening much faster than retailers anticipated.
Now, stores are left with bloated inventories of large TVs, small kitchen appliances, and other categories of unwanted merchandise.
And it’s not just Target! The AP is reporting that other retailers, including Macy’s, Kohl’s, and Walmart, also discussed concerns regarding excess inventory in their quarterly earnings results last month.
So the official theory is that the pandemic is (at least partially) to blame. Our Facebook followers offered a few other ideas in this lively discussion…
The Little House on the Prairie Dresses did them in… or the crop tops… it’s honestly too close to call 🤷♀️ – Tiffany
We used to buy a lot of our daughter’s clothes from Target but the quality, style, and selection have gone way down. We never even look anymore. – LaNae
Love how they say it’s because we are spending money on making home improvements and traveling, instead of taking ownership of the fact that they made a horrible decision in choosing their fashion designers. 😂 – Mike N Lisa
Their clothing came in late. At one point my store had Halloween, Thanksgiving, Christmas, Valentine’s Day, St Paddy’s, Easter, and the 4th of July was just starting to show up. All in the toddler section and nothing was discounted. – Melissa
I think some of these stores are finally getting shipments of their backlogs. What was to be here last fall is now showing up, or what was to be here at Christmas time is now showing up. – Rhonda
What does all this mean for the average Target shopper?
Although Target hasn’t revealed details about the discounts it’s planning to offer, we do expect to see price cuts across categories that were big sellers during the pandemic. Think home goods, small appliances, furniture, patio & garden, home electronics, seasonal items, and more.
BUT – buyer beware! Target plans to offset these price cuts by increasing the price of products that are now more in demand. Unfortunately, these will be essential products like groceries, baby care items, and health/personal care items.
Rest assured that we are watching this situation very closely, and we’ll keep you posted with any new discounts or price hikes we find at Target! Have you noticed any unexpected price changes at your local Target?
There are probably many things. One being there style of clothing. I didnât think it was fashionable at all.
I don’t even go to that side of the store anymore
I love the Art Class line for girls. I wish they had similar style for adult women.
I have noticed that their sales are less interesting. Their clearance is not at all appealing. And the selection is sometimes poor, especially kids clothes. Before the pandemic Target was one of my favorite stores. Iâd be there the week after most holidays to find clearance. Not any more. Thereâs nothing left and what is left is not at all appealing. About a month ago I saw an employee stocking toddler shirts in Christmas prints. And they were full price. Weird.
I agree Judy!
Totally agree with all the comments in blue- especially Tiffanyâs Lolol. Saw those dresses and legit thought âmy days of buying clothes at Target are over.â Also my store got remodeled, I hate it now. I walk in for 1-4 food or personal care items and Iâm out. I have zero interest in the rest of the store with the new layout.
I love Target and am eager to see what will be on offer.
From the perspective of someone who works at Target and in the clothing section (mens in particular) for me the real problem has been sheer volume of merchandise that is coming in the backdoor. On any given day I can get 12 of the same shirt in the same size of many different shirts (like did I need 24 of the same small green shirt? Nope!), it is very hard to turn over that sheer amount of inventory. Men’s styles have remained fairly consistent so I feel things sell, yet just not fast enough for what is being sent. Add to this the fact that the whole clothing team is depleted (there are people who weren’t replaced from December who retired) and in my store we cannot catch up on any 1 thing. I think we have 20+ pallets in the back stockroom and with 5-6 coming daily there is no progress to be made ever. My guess is that Target as a whole has had this similar issue of just too much of the same thing đ
Target has been a big disappointment the last couple of years. I agree with all the comments
Great! Increase grocery prices. Even less of a reason to go in the store.
I have to agree…those prairie dresses!? What were they thinking?
Someone old was probably like hmmm holly hobbie is now a show-prairie dresses! (Without ever seeing the show)…. or some cult leaders that force women to wear prairie dresses is now at target lol
Wait a minute. So Target is most likely understaffed and not getting these items out on the floor in a timely manner. Thus the items dont sell well. In turn, they blame the shoppers for “buying the wrong items” and so they are going to punish us with higher prices for high demand items we now need for our famlies?!! What kind of bologna is this? When things dont sell there, they used to just clearance it ems out and send them to Goodwill with a nice tax write off. Where have the good sales been?! The real, before covid sales?! Kohls, I’m looking at you too! And what a surprise both stores have all this surplus. I think they were both just hoping we would all just continue to pay full price for everything and would be grateful we could have the item in hand.
Target isnât blaming consumers, this article is not written by Target. The Hip2Save author is explaining some of the reasons why there are issues but itâs not consumers âfaultâ it just is consumer buying habits were different than expected. They have an overstock and they are having deep discounts because of it. Kind of end of story.
Well Kohls is up for sale, so thatâs that too. There was a vote of no confidence and they are going the way of la JC Penny/Kmart/Macyâs, might as well all they sale is lower quality overpriced granny’s clothes.
Stores always do that. Cut costs on things that aren’t selling and raising the cost on things that are to make up the difference. Just the way it goes.
When I worked at the PX I say it happen all the time. If things got discounted management upped the prices on other things to make up for the discounted loss.
Hereâs a grand idea- stop putting the overstock items on trucks and just auction off the overstock! We still have massive issues here getting necessities (like food, tp, etc) on a regular basis. Shelves are still bare (the necessities are never fully stocked, many items are constantly out of stock- if you donât get there right when they unload, itâs gone!)… with a shortage of truckers (or trucks being allowed into Cali- which they should just be letting in all the truckers ATM), stop wasting space on stuff that doesnât sell.., also I noticed their clearance usually stays at around 15-30%- no joke sometimes I visit another city and I saw several swimming suits that had been on clearance for OVER A YEAR still sitting at 30% off! I was interested in one of the tops, but only if it was way cheaper… I used to go to target pretty regularly- up to twice a week or every other week at the very least… now itâs rare if I go there at all…sales arenât very good and if they are, items are gone and not restocked the entirety of the sale… also I noticed for the Christmas clearance some Christmas items werenât discounted at all and when I asked, the manager said they were sticking with the system đ¤ˇđźââď¸ I was there a month and a half later and those Christmas decor items were still sitting on the shelf full price!