What: Due to an aggressively large over stock of retail inventories, Target is cancelling orders with suppliers and slashing prices on merchandise in store.

Why it is important: In an attempt to clear out the large inventory, the company is slashing its prices ahead of the critical upcoming fall and holiday shopping seasons.

It seems that there is a shift emerging amongst Americans as they are no longer spending on home renovations or home decor they are now shifting towards travel, night outs, etc. The shift that has emerged in Americans pivoting away from pandemic spending was laid bare in the most recent quarterly financial filings from several major retailers.

Target reported last month that its profit for the first quarter compared to the same time last year dropped by 52%.

With the decision to cut prices Target is looking to clear out the unwanted merchandise to make more room for in-demand products like groceries and makeup products.

Target is working with their suppliers to cover costs for those vendors whose orders are being cancelled.

Target is looking to clear out overstock of merchandise from shelves