Target Corp. will cut prices, cancel orders and take other steps to cut its bloated inventory, moves that will lower its profit in the current quarter more than executives thought just three weeks ago.

Demand softened for home products, like furniture, that were popular during the height of the pandemic. In addition to presenting a financial cost, a lot of those items are bulky and take up considerable space in stores and warehouses.

"We got more of that product than we want to have, and we think dealing with that head-on by being aggressive now positions us with the right flexibility for the back half of the year," he said.

But it will come at a cost. .

While its excess inventory will be marked down, Target may see its overall price level rise this summer as it grapples with transportation and other costs that are being affected by inflation.

"Price is the last lever that we pull. … But price increases are unavoidable given the inflationary pressures that we've seen in many categories," Fiddelke said.

https://www.startribune.com/target-will-slash-prices-to-get-...