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American Focus > Blog > World News > Target Sales Tumble As Retail Giant Warns Of More Trouble Ahead
World News

Target Sales Tumble As Retail Giant Warns Of More Trouble Ahead

Last updated: May 21, 2025 5:04 pm
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Target Sales Tumble As Retail Giant Warns Of More Trouble Ahead
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Target reported a larger-than-expected decline in sales for the first quarter of 2025, with a warning that sales are likely to continue falling throughout the year. The drop in sales is attributed to customer concerns over tariffs and the economy, leading to reduced spending.

Target also mentioned that customer boycotts had a negative impact on sales during the quarter. The retailer faced backlash for scaling back diversity, equity, and inclusion initiatives, which led to further customer dissatisfaction.

Shares of Target fell by 3% before the market opened on Wednesday.

Sales for the quarter dropped by 2.8% to $23.85 billion, falling short of Wall Street’s expectations. The company also revised its annual sales projections, now anticipating a low-single digit decline for the year.

Target is taking steps to address the decline in sales by offering new items priced under $20 to attract customers worried about the economy and inflation.

Target’s struggles in recent years to boost sales, especially in nonessential categories like fashion and home furnishings, have intensified due to increased competition from Walmart and Amazon.

Target operates nearly 2,000 stores across the country and employs over 400,000 individuals.

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