In an industry with extremely fierce competition like retail, there is no room for price gouging. Target CEO Brian Cornell said Wednesday.
In an interview with CNBC”scream boxThe retail executive disputed campaign talking points accusing grocers of jacking up prices. He said retailers must respond to customers or risk losing business.
He was asked by CNBC’s Joe Kernen, who referenced comments by Democratic presidential candidate Vice President Kamala Harris and asked whether Target or its competitors had ever benefited from price gouging. Harris last week Proposed the first-ever federal ban Regarding the issue of “price gouging by companies in the food and grocery industry,” it was said that some companies charge too much, exacerbating household inflation.
“We’re a small business,” Cornell responded, noting that profit margins in retail are tight. He described the many places customers can look for lower prices or find items elsewhere, from going to a store to browsing on their phone to compare the price of a gallon of milk at different retailers.
Target retail chief makes remarks behind discount store Exceeded Wall Street expectations It reported earnings and revenue on Wednesday but was cautious about its full-year guidance. The company said it expects comparable sales, excluding the impact of store openings and closures, to be at the lower end of a flat range to increase 2%. However, the company raised its profit guidance, saying it expects adjusted earnings per share to be between $9 and $9.70, up from its previous forecast of $8.60 and $9.60.
inflation and Consumer anger over high prices For companies like Target, its importance continues to grow. Numerous retailers, including home depot, Walmart and macy’s department storeReports over the past two weeks have been that wary consumers are very picky about where they spend their money.
Cornell told “Squawk Box” that the retailer is trying to appeal to “consumers who are carefully managing their budgets,” adding that “value is in our DNA.”
Target is one of the consumer brands with extensive experience Responding to consumer concerns through price cuts. it Approximately 5,000 daily necessities reduced in pricesuch as diapers and peanut butter, to try to drive higher traffic and sales. Others, such as McDonald’shave Introducing great value meals.
So far, the discounts have resonated with Target: Customer traffic to Target stores and websites increased 3% in the quarter, even as shoppers put less money in their carts than a year ago.
Walmart CEO Doug McMillon said last week prices have dropped But he said inflation was “more stubborn” on the dry goods and processed food aisles.
During an earnings call with investors, he said some brands “are still talking about cost increases and we’re pushing back aggressively because we think prices need to come down.”
