DR Barton, head of Woodshaw Financial Group, gives his outlook on Walmart and Apple stocks and discusses the decline in Treasury yields.
Target CEO Brian Cornell weighed in on Thursday about the spending habits the retailer has seen among its customers, saying they have been “buying less stuff.”
“They manage that budget very carefully and that definitely puts pressure on discretionary spending. They’re buying fewer things, even in food and beverage,” Cornell, who has led the Minnesota-based retailer since 2014, said during a CNBC interview.
He added that when looking at retail spending, “you can just look at sales and say a really healthy consumer is spending.”
Target CEO Brian Cornell speaks with team members at the Target Center on Thursday, September 15, 2016, in Minneapolis, MN. Target is holding its Fall Nation Meeting at the Target Center. Jerry Holt/Jerry. [email protected] (Photo by Jerry Holt/Star Tribune… (Getty Images/Getty Images)
Retail sales unexpectedly rose 0.7% in September, according to the latest data from the U.S. Commerce Department.
Retail sales unexpectedly rise in September as consumers continue to spend
Still, in recent quarters, shoppers have “tightened” the quantities they buy per unit for food and beverages.
| ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| TGT | TARGET CORP. | 112.86 | +1.79 | +1.61% |
Cornell added that Target has experienced “seven consecutive quarters of declines in both dollars and units” in discretionary categories, noting that people were buying fewer clothes, home goods and toys.
Target shopping cart (iStock / iStock)
In addition to reduced spending on consumer goods, consumers are “no longer purchasing the goods they purchased during the pandemic.” although Cornell said that “will change over time.”
“We are certainly planning conservatively in these categories,” Cornell added.
He also noted a trend that Target has observed: “The American consumer enjoys these seasonal moments, be it Halloween or summer moments, going back to Mother’s Day and Father’s Day.”
TARGET SCRAPS plans to open a new store in Philadelphia after the crime crisis led to more store closures nationwide
Target, he said, wants to capitalize on such trends.
Before Halloween, the National Retail Federation (NRF) predicted that Americans would spend about $12.2 billion related to the holiday.
Shoppers in a Target store on Black Friday in Chicago, on Friday, November 25, 2022. (Christopher Dilts/Bloomberg via Getty Images / Getty Images)
According to a recent trade association estimate, winter holiday shoppers will spend an average of $875 this year. According to NRF, these funds will be used for gifts, decorations and food.
GIFTS FOR THE HOLIDAYS: HOW TO PLAN AND SHOP WISELY THIS SEASON AMID INFLATION
In mid-August, Target adjusted its expectations for the third quarter. The retailer said it expected a “mid-single-digit decline” for comparable sales, while it gave adjusted earnings per share guidance of $1.20 to $1.60. The company is scheduled to report quarterly results on November 16.
FOX Business’ Megan Henney contributed to this report.