The Trader Harbor
  • Business
  • Politics
  • World News
  • Stocks
  • Business
  • Politics
  • World News
  • Stocks

The Trader Harbor

World News

Target CEO addresses price gouging accusations in retail

by admin August 22, 2024
August 22, 2024
Target CEO addresses price gouging accusations in retail

There’s no room for price gouging in a ultra-competitive business like retail, Target CEO Brian Cornell said on Wednesday.

In an interview on CNBC’s “Squawk Box,” the retail chief disputed campaign talking points accusing grocers of inflating prices. He said retailers have to be responsive to customers or risk losing business.

He was asked by CNBC’s Joe Kernen, who referred to comments by Democratic presidential candidate Vice President Kamala Harris and asked if Target or its competitors ever benefit from price gouging. Harris last week proposed the first-ever federal ban on “corporate price-gouging in the food and grocery industries,” saying some companies are charging excessively and fueling household inflation.

“We’re in a penny business,” Cornell responded, noting the small profit margins in the retail industry. He described the many places that customers can turn to check for lower prices or to find merchandise elsewhere, from going to stores to browsing on their phones to compare the prices of a gallon of milk at different retailers.

Target’s retail chief made the comments after the discounter beat Wall Street’s expectations for earnings and revenue on Wednesday, but struck a cautious note with its full-year guidance. It said it expects comparable sales, which take out the impact of store openings and closures, to be on the lower side of its range of flat to up 2%. Yet it raised its profit guidance, saying it expects adjusted earnings per share to range from $9 to $9.70, up from the previous outlook of $8.60 and $9.60.Inflation and consumers’ outrage about high prices has continued to loom large for companies like Target. A wide range of retailers, including Home Depot, Walmart and Macy’s, have reported over the past two weeks that cautious consumers are being picky about where they’re spending.

Cornell said on “Squawk Box” that the retailer is trying to appeal to “a consumer who is managing their budget carefully” and said “value is in our DNA.”

Target is one of the consumer brands that has responded to shoppers’ concerns by lowering prices. It cut prices on about 5,000 everyday items, such as diapers and peanut butter, to try to drive higher traffic and sales. Others, such as McDonald’s, have debuted value meals.

So far, those discounts have shown signs of resonating at Target: In the quarter, customer traffic across Target’s stores and website rose 3% — even as shoppers put a little less in their shopping carts than they did a year ago.

Walmart CEO Doug McMillon said last week that prices have come down in many merchandise categories, but said that inflation “has been more stubborn” in the aisles that carry dry groceries and processed foods.

On an earnings call with investors, he said some brands “are still talking about cost increases, and we’re fighting back on that aggressively because we think prices need to come down.”

This post appeared first on NBC NEWS

0
FacebookTwitterGoogle +Pinterest
previous post
What Does This Mean for the S&P 500 Rally?
next post
More than 28% of Americans are searching for new jobs — the highest rate in a decade

Related Posts

A U.S. construction boom is sending rents lower...

August 15, 2024

UAW’s Tennessee win fuels backers’ hopes in the...

April 26, 2024

Digital health companies pummeled by Wall Street in...

December 27, 2024

After success in Paris, Los Angeles looks to...

September 13, 2024

Ascension Health, largest Catholic hospital chain in the...

May 10, 2024

Procter & Gamble to cut 7,000 jobs as...

June 10, 2025

Dave & Buster’s to let players bet against...

May 3, 2024

Red Lobster seeks a buyer as it looks...

April 26, 2024

Macy’s turnaround hinges on revamping some stores and...

March 7, 2025

A man once sued by the SEC wins...

May 22, 2025

    Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Latest

    • The Real Drivers of This Market: AI, Semis & Robotics

      August 31, 2025
    • S&P 500 Breaking Out Again: What This Means for Your Portfolio

      August 31, 2025
    • Epstein estate to hand over ‘birthday book’ to lawmakers, House Dem says

      August 31, 2025
    • Dyan Cannon denied White House entry after lying about her age on passport documents

      August 31, 2025
    • Israel eliminates Houthi prime minister in Yemen airstrike targeting senior government officials

      August 31, 2025
    • Sen. Bernie Sanders calls on RFK Jr. to resign following departure of CDC officials

      August 31, 2025

    Categories

    • Business (1,370)
    • Politics (4,370)
    • Stocks (1,619)
    • Uncategorized (45)
    • World News (1,363)
    • About us
    • Contact us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: TheTraderHarbor, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 thetraderharbor.com | All Rights Reserved