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Target pulls outlook, curbs spending

Video Credit: Reuters Studio - Duration: 01:04s - Published
Target pulls outlook, curbs spending

Target pulls outlook, curbs spending

Target Corp withdrew its financial outlook Wednesday and said it would scale back on planned investments to focus on meeting surging demand as Americans stock up on essentials and stay home to slow the spread of the coronavirus outbreak.

Fred Katayama reports.

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Target is withdrawing its own targets.

The retailer said Wednesday it's scrapping its quarterly and full-year financial forecast it had issued just three weeks ago and suspending its $5 billion share buyback plan.

It'll also more than halve the number of stores it had planned to remodel this year and open fewer small format stores it had previously planned.

It's scaling back on investments as it focuses on meeting surging demand at its stores.

Americans have been flocking to Target to stock up on food, drinks and household essentials as they stay home to slow the spread of the coronavirus outbreak, driving up sales of those goods more than 50% so far in March.

Overall same-store sales have risen 20% to date this month from a year earlier.

But Target expects that demand surge to raise costs more than expected.

It has cut store hours so it can clean and restock stores.

And it is temporarily raising its minimum wage for workers at its stores and distribution centers.

Target shares fell in early trading Wednesday.




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