Target to heavily discount products due to excess inventory

Target inventory markdowns overview: 

• Who: Target marked down unwanted inventory and will cancel orders to make room for more desirable items. 
• Why: The big-box retailer says it is attempting to clear out unwanted inventory in time for key sale seasons such as back-to-school and the holidays. 
• Where: The discounts will occur at Target retail stores nationwide. 

Target marked down unwanted inventory in an effort to make room for merchandise such as back-to-school supplies, groceries, cosmetics and other household essentials. 

The big-box retailer also says that it will cancel orders and take other steps to rid itself of extra inventory, CNBC reports. 

Target says the reason for the moves is to keep up with a changing consumer demand that is waning on once-popular COVID-19 pandemic product categories. 

The company said it decided on its new inventory plan after learning that its competitors were dealing with similar issues with changing consumer demand, CNBC reports. 

Walmart, for example, reportedly found that consumers are making fewer compulsory purchases in the face of rising grocery and gas prices. 

Gap, meanwhile, has said that consumers today look for more office clothes and party dresses rather than the fleece hoodies and active apparel it currently offers, CNBC reports. 

Target, other retailers finally get back to healthy inventory levels

The shift in consumer spending habits comes as retailers have finally begun to get back to healthy inventory levels after dealing with a number of supply chain challenges and shortages exacerbated by the COVID-19 pandemic. 

Now, however, retail stores have too many items, such as pajamas and throw pillows, while consumers look for summer products like swimsuits or back-to-the-office items like suitcases, CNBC reports. 

Inflation has also reportedly caused some consumers to take a step back from spending money while others choose to use their funds for more activity-based things such as traveling or dining out. 

Target says it is currently sorting through its inventory to determine which products to pack away so that it can sell them at full price in the future and which it should promote and figure out how to sell as soon as possible, CNBC reports. 

A class action lawsuit was filed against Target in May by a consumer claiming the company sold lidocaine patches that were not “maximum strength” as advertised. 

Have you purchased a product from Target that was on sale? Let us know in the comments! 

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