MISSING TARGETS

Target Sales Drop Sharply Amid Americans’ Tariff Fears

The retailer has felt the sting of the president’s tariff war.

Target has slashed its annual sales forecast, citing economic uncertainty caused by President Donald Trump’s tariff war. The big-box retailer revealed its shares were down by 3.7 percent on Wednesday, reflecting a larger trend of digital sales replacing in-store purchases. “While our sales fell short of our expectations, we saw several bright spots in the quarter, including healthy digital growth,” said CEO Brian Cornell who added that the retailer is “not satisfied with current performance and know we have opportunities to deliver faster progress on our roadmap for growth.” The forecast stands in contrast to main rival Walmart, who announced last week it had maintained its annual forecasts but would be raising prices to combat price hikes caused by Trump’s tariffs—an announcement which drew the ire of the president who insisted retailers should “eat the tariffs” rather than pass the extra costs onto consumers. Target previously announced it depends on China for around 30 percent of its foods, down from 60 percent in 2017, but was seeking to reduce that further.