The objective of the American retail chain of sale has reduced his expectations for the year after a sharp drop in sales that he blamed for a “very difficult environment” in the middle of the introduction of commercial prices.
Its sales fell 5.7% in the three months to May, at a time when the company also faced a reaction following a previous decision to put an end to the objectives of diversity, equity and inclusion (DEI).
The bosses refused to confirm any increase in potential prices due to the increase in import taxes, saying that the price increase could be a “last appeal”.
Brian Cornell, CEO of Target, said that price decisions would depend on the retailer’s efforts to get supplies in addition to products in the United States and reduce his dependence on China.
“It will play a very important role,” he said following the business results.
Unlike its Walmart rival, which generates most of its revenues from the sale of grocery articles such as bananas, milk, hygienic paper and shampoo, big Target sellers are mainly in non -essential products, such as home furnishings and beauty products.
He gets a majority of these products from China, with 30% of his products in stores in the country. This is down 60% in 2017, but analysts said that the impact of higher import prices on the country’s goods would be difficult to sail.
US President Donald Trump has imposed prices on many countries since returning to the White House to encourage businesses and consumers to buy more American manufacturing.
Trump hopes that his policy will help stimulate American manufacturing and jobs, but economists have warned that this could lead to higher prices for customers.
The United States and China have agreed with a truce to reduce import taxes on goods negotiated between the two countries, which has disassembled the trade war between the two largest economies in the world, but American import taxes on Chinese remain higher than before at 30%.
Rick Gomez, the company’s commercial director, said Target was trying to negotiate with suppliers and extend the number of suppliers beyond China, as well as the calendar adjustment and the quantity of orders.
“These efforts should compensate for the vast majority of additional exposure to prices,” he said.
Walmart revealed last week that it would increase prices due to prices, which prompted Trump to say that the supermarket should “eat prices” on imported goods instead of transmitting costs.
Target said on Wednesday that he is now expecting a low -figure drop in annual sales. He previously planned net growth of sales of around 1%.
In January, Target announced that he was putting an end to his Dei goals.
The Trump administration is opposed to such policies, which has led to a multitude of large companies reduces initiatives.
The channel was continued by a group of shareholders earlier this year, led by the Riviera Beach Police Retirement Fund in Florida, which argued that Target had frauds them by allegedly hiding the risks associated with its dei policies.
The trial referred to a reaction in 2023 on LGBTQ + goods in its stores, which caused the fall in its sales and its stock market and led to boycotts.
Mr. Cornell said that the inversion of certain dei policies had played a role in the performance of the first quarter, but that he could not quantify the impact.
