r/news Aug 17 '22 Wholesome 2 Burning Cash 1 Gold 1 Silver 2 Shocked 1 hehehehe 1 Helpful 1

Target profit plunges 90% as inflation-weary shoppers pull back

https://www.cnn.com/2022/08/17/investing/target-earnings/index.html
51.6k Upvotes

6.3k

u/[deleted] Aug 17 '22 All-Seeing Upvote

I’m not paying $50 for a laundry basket no matter how cool it is.

2.4k

u/ashesarise Aug 17 '22 Silver Helpful

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u/IceColdGuero Aug 17 '22

And if you scroll down that page a bit to “guests ultimately bought” you’ll see they went for the $6 basket.

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u/ashbash-25 Aug 17 '22

I have two of the $6 ones. They work just fiiiine.

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u/HighStaeks Aug 17 '22 Wholesome

These shmucks,, not taking the free red basket they give you.

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u/Butterflychunks Aug 17 '22

I went to target and they had plastic plants for $90+. Maybe they should re-evaluate their price model.

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u/rockriver74 Aug 17 '22

Damn you Joanna and Chip Gaines!

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u/Work-Safe-Reddit4450 Aug 17 '22

Hearth and Hand can fuck off

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u/radkattt Aug 17 '22

I feel like target got a bit cocky with their home decor and started pricing it too high. The fact I can find majority of what’s at target at home goods for less money is insane. It used to be the other way around.

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u/JonhaerysSnow Aug 17 '22 edited Aug 17 '22

Yeah everything there is pretty expensive and most of it is just the same level of quality as found at any other brand.

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u/spaceballsrules Aug 17 '22 All-Seeing Upvote

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u/Kupiga Aug 17 '22

Yo, I was just in the grocery store and there were some TP rolls, I don’t know what brand bragging about how big the rolls are. “Our most mega rolls yet!”. “Equivalent of 6 normal toilet paper rolls.”

But they just… they just look like normal rolls of toilet paper, man.

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u/SucculentVariations Aug 17 '22

Honestly I fuckin hate mega rolls anyways. They don't fit in my TP roll holder, well they do but too big to spin until you use a bunch of it.

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u/VermontNurse2 Aug 17 '22 All-Seeing Upvote Defeated

Everything is too expensive now.

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u/liz91 Aug 17 '22

I used to go to target just for one thing and come back with 30 items. Now I’m headed to tjmaxx and buying one thing.

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u/stitchitystitch Aug 17 '22 edited Aug 17 '22

That’s why I like the online ordering for target. They might charge me a little more for one item I want but sometimes it is actually on sale when it isn’t in store. More importantly though I only get what I need, unlike every time I go inside. Saves a lot of money that way.

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u/wkomorow Aug 17 '22

I once got downvoted for saying using store apps to order pickup saves you money, because you are not impulse buying. It is absolutely true you save money. I am not talking about instacart, I mean things like the Target or Stop and Shop app.

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u/FairJicama7873 Aug 17 '22

Yes! And I always end up editing my cart once I see the total. I don’t have to commit to it like I do at the register

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u/wkomorow Aug 17 '22

Exactly! You put that well.

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u/genreprank Aug 17 '22 hehehehe

Last time i was in target, I saw a "congrats on adulting" trophy. Fricken hilarious lol. But I decided not to get it. Then I thought to myself, "that was a pretty adult decision. I think I earned this trophy!" So I bought it

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u/CaymanRich Aug 17 '22

$5.00 for crappy paper plates that were $1.00 a year ago. Yeah, we’re cutting back.

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u/stitchitystitch Aug 17 '22 Silver

I have definitely noticed crazy price jumps on some things.

7.3k

u/CalmMayhem Aug 17 '22 All-Seeing Upvote Wearing is Caring

I wonder how much of that is pure inflation vs companies testing the waters to see if they can get away with it. Maybe a mix of both

4.4k

u/stitchitystitch Aug 17 '22

It’s got to be both in my opinion. I think a lot of companies see it as an easy opportunity to make money and blame inflation or supply chain issues.

2.8k

u/Fritzed Aug 17 '22 Silver

We call that "the oil company model".

657

u/TemetNosce85 Aug 17 '22

"Tragedy of the commons", but your pocketbook is the resource being fought over.

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u/MinuteManufacturer Aug 17 '22 Wholesome

My pocket book is getting clamped between my ass cheeks.

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u/Scarbane Aug 17 '22

The origin of the term tightass

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u/thebeginingisnear Aug 17 '22

10000%. Only thing for consumers to do is vote with their wallets and avoid non essential items until prices come down.

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u/mullett Aug 17 '22 Wholesome

Legit question - have prices ever come down after inflation?

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u/fallingheavens Aug 17 '22

This is what I worry about. I don't think anything would go down except for gas. Everyone will just continue to blame someone else down the chain or up the ladder. We're screwed.

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u/RectumdamnearkilledM Aug 17 '22

For example let's rewind back to the first time gas jumped over $5 a gallon and the airlines decided you need to pay between $30-$50 per bag. Fast forward a few years to when the price of gas dropped to about $2.50 a gallon and you're still paying $30-$50 per bag. You got used to bag fees, and once they didn't need the extra to offset the cost of fuel they continue to tack it on to increase their profits.

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u/Myantology Aug 17 '22

I’ve been traveling only carry-on for years to avoid that luggage fee and then three weeks ago I’m told upon purchase that it’s mandatory bag-checking on the flight and it’s $45.

I get to the airport and it turns out I don’t have to check my bag. I said cool, saved myself $45 on a $680 flight. (same flight last year $360)

Nope, still a $45 charge regardless of where I put my luggage. Make that a $725 domestic flight.

And we wonder why we have insane people having public freakouts every single day.

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u/butterscotch_yo Aug 17 '22

Ok, so it is really recent that they ALL started doing this. I hadn’t flown since last summer and booked tickets last week. I didn’t fly much in the last few years, but I have plenty of experience playing the carry-on and hidden fees game. Imagine my surprise when I had to practically book MULTIPLE flights just to see the REAL prices after the carry-on/checked bag/upgrade to economy plus fees instead of just doing that with Spirit as was my previous experience.

It was shitty when just Spirit was doing this, but Spirit is/was the budget airline so I only did that when the other airlines had truly atrocious prices. When every airline acts like the Greyhound Bus of the Skies, it’s infuriating.

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u/TemetNosce85 Aug 17 '22

Just gas prices from what I've seen.

Every time there is a "crises", prices go up, yet they never go down. I'm 37 and have been an adult for 19 years.

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u/j_ly Aug 17 '22 edited Aug 17 '22

Real estate would be the other one, though it's hard to see that happening today with megacorps buying homes to rent for continuing profit streams.

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u/mullett Aug 17 '22

43 here and I can’t remember stuff at the store getting “cheaper” but it could be so subtle I don’t notice or something like that.” Ketchup isn’t expensive anymore, it went from $4 to $3.75!”

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u/schistkicker Aug 17 '22

Haha, that price drop is because they shrank the bottle from 16 ounces to 14. Joke's on us!

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u/MrDrumline Aug 17 '22 edited Aug 18 '22

One exception is tech, 8 years ago a 4K TV would run you thousands and had pretty mediocre picture quality, but now even a couple hundred bucks at Walmart will get you a display that puts those models to shame, even though those dollars are worth less now than they were 8 years ago.

Compare to something like food. You're probably getting less of it thanks to shrinkflation and your corn flakes sure aren't better than they were 8 years ago. Hell, some foods are worse now, using cheaper ingredients to lessen the impact of inflation on profit margins.

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u/TemetNosce85 Aug 17 '22 Wholesome All-Seeing Upvote LOVE!

Yeah, things might go down a little bit, but it is so insignificant it's not worth paying attention to.

Also love that we were told over and over that if they raise minimum wages, prices go up. Yet, here are all these automated registers they don't have to pay a wage, yet prices never go down. They ship new factories to Timbuk-wherever, paying those people slave wages, yet prices never go down. Hmmm... maybe we've been lied to this whole time?

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u/some1sWitch Aug 17 '22

As someone who works for a large company that imports a variety of items from China... its mostly greed.

There's some shortages going on, some raw materials that are expensive because of that, but it's mostly greed through and through.

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u/ChiefCuckaFuck Aug 17 '22

All of the retail grocers reported record profits every single quarter of the pandemic and well into now. It's greed. And to anyone with half a brain it's insultingly brazen.

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u/Kupper Aug 17 '22

“Inflation” raises prices 0.25, stores “we have to keep up” raises prices 2.50

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u/PhillyBengal Aug 17 '22

The mouth wash I got was 1.99 maybe 2 months ago. It’s not 4.59.

The bottle size of my conditioner has cut I half within a month

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u/shaidyn Aug 17 '22

Yep. Even if we can keep up with inflation, there is nothing we, as consumers, can do about shrinkflation.

And don't even get me started on crapflation. Several products I used to enjoy have just become watered down or waxy over the last year. They keep adding filler ingredients.

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u/MrRipShitUp Aug 17 '22

The same face wash I’ve been using for 20 years is now thin and liquidy compared to what it used to be AND it costs more. It’s crazy.

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u/SlightlyControversal Aug 17 '22

New and improved!*

*profit margin for manufacturer

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u/InsertANameHeree Aug 17 '22

Remember when Pop Tarts weren't half crust?

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u/shaidyn Aug 17 '22

YES.

I'm getting older. And I'm really trying hard to avoid the trap that my elders fell into. "Things were better in my day."

But like, things were better in my day? Objectively, our junk food tasted better, had fewer fillers, larger servings.

I bought some swedish berries the other day and they had almost no flavour. They just tasted like wax. It was awful.

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u/ChallyPrime Aug 17 '22

Pizza Hut was better 30 years ago

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u/qball8001 Aug 17 '22

Im not even ashamed to admit how much I used to love the Hut. It was the highlight of my weekend when my mom came home with a box from all the books I use to read.

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u/KillerKowalski1 Aug 17 '22

Dude the salad bar and yellow cups. Pizza Hut was an event.

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u/Neravariine Aug 17 '22

The personal pan pizzas were heaven baked then. The cheese and sauce were always the right amount of melted and flavorful. I thought PH would be my favorite pizza place for life...

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u/0nlyhalfjewish Aug 17 '22

I keep having to buy toilet paper because the rolls are about half as many sheets.

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u/Lord_Fusor Aug 17 '22

But the packaging clearly says 6 = 24 now

Big toilet profiteers strike again!

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u/shhhpark Aug 17 '22

bought my usual toothpaste off amazon and didnt notice the size...its ridiculous how smal the tube seems now.

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u/Tinawebmom Aug 17 '22

My son's conditioner lost 8 ounces and increased by $1 in price. The label claiming "family size" has remained the same. Soon we won't be able to buy food for the entire month. Prices are increasing too drastically by these greedy corporations.

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u/Always_0421 Aug 17 '22 edited Aug 17 '22

Don't forget shrink-flation too.

Bacon used to come in standard 16oz packages...now its 12 with 10 and 8oz packages if you aren't careful.

Water added to whole cuts of beef.

Chips, cereal, crackers, laundry detergent, shampoo, toothpaste... same package, similar price, less volume.

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u/0nlyhalfjewish Aug 17 '22

Cereals and their packaging piss me off. Family size, MEGA size, blah blah blah… You aren’t fooling me.

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u/Scoot892 Aug 17 '22

Family size: one bowl for each family member.

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u/93ImagineBreaker Aug 17 '22

Family sized oreos were normal sized 10-15 years ago

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u/Skellum Aug 17 '22

Don't forget shrink-flation too.

This angers me far more than normal inflation. The recipes I go by use specific quantities, not being able to purchase them like that pisses me off so much.

I math them out to where they should be again because fuck purchasing more.

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u/gargeug Aug 17 '22

You can figure out how old a recipe is by how big the cans you are supposed to use are. 16oz is real old, 15 oz is like 10+ years ago now. Seems like 14.5oz is standard now.

I actually go out of my way to find and pay more to get larger cans so they fit my recipe better.

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u/JustineDelarge Aug 17 '22

A lot of people don’t even know that the standard can size (in the US) used to be 16 ounces.

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u/dsidnt Aug 17 '22

It blows my mind that it’s legal to inject meats with water just to have more mass to sell.

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u/mjohnsimon Aug 17 '22 edited Aug 17 '22

My gf and I were talking about how our quick meal at Taco Bell nearly cost $20.

A few years ago, the same meal would've been like $10 with other goodies.

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u/Phillip_Lipton Aug 17 '22

McDonalds torched the dollar menu over covid.

A cheeseburger, a coke, and a small fry used to cost $3 total. Fries are now $3.

Now it's over $8 total. I just don't go.

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u/AangLives09 Aug 17 '22

The HASH BROWNS are like $3 now! The fuck????

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u/korben2600 Aug 17 '22

Seriously, wtf is up with the hashbrown pricing? They charge almost as much for a tiny little piece of hashbrown as two whole sausage McMuffins.

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u/StreetTriple675 Aug 17 '22

That’s also so they can push their app imo

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u/jearciocb Aug 17 '22

yeah, i bought one sausage egg mcmuffin and a single hashbrown a few weeks back. i NEVER do that, it had been years, but i was hungover. i was expecting a few dollars. cost me almost $8. wasn’t even good. meh. never doing that again.

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u/N0rDak Aug 17 '22

I basically don't eat out anymore because (even though I am well paid and can afford it). a McDonalds meal at $12 just isn't worth it. I can make a hell of a meal for one at $12 or $50 for 4...

Same with so many services... I ended up doing my fence this year myself because labor was almost $8k... took 4 weekends to get it done to enclose about 1/3 acre of land.

I think people are just learning to do with out, do themselves, and splurge on a few things.

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u/6inchVert Aug 17 '22

My man I rolled up to Wendy's a few nights ago, grabbed a Spicy Chicken sandwich and a medium frosty. Total was $9.20-something. I was befuddled, I actually asked for the receipt because it made zero sense to me. Sure enough they got my order right, it really was over $9. I can afford $9 but that isn't the point, the point is what a terrible value FF has become.

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u/tlsrandy Aug 17 '22

Fast food doesn’t make sense anymore.

At that same price point you can go to a pub and get a burger. I suppose the drive through/fast aspect is still in play, but for me that was never as big a draw as cheap.

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u/MuscleManRyan Aug 17 '22

Plus it really seems like the quality has nosedived since Covid started. I can barely get a burger, fries, and a drink for 2 people without at least one item being messed up/inedible

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u/LambdaCorvus Aug 17 '22

My housemate and I are just about ready to call it quits with fast food. He has very specific dietary needs, and these past several times we've got food, doesn't matter where from, they just do not follow instructions. Or there's overt quality issues. It's disheartening when we only eat out or order in twice a month, with things being so expensive.

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u/Misommar1246 Aug 17 '22

I wanted to grab a sandwich the other day, a small sandwich with a slice of ham and one slice of cheese in it was $8. I just walked out because I couldn’t justify paying $8 for that, damn thing wasn’t even cooked, it was a cold sandwich.

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u/AangLives09 Aug 17 '22

Hahaha! I have NEVER in my life asked for receipts and analyzed them than I have this year. And I make decent money. It’s insane.

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u/malbecman Aug 17 '22

We got a quote for 6 new internal doors...nothing fancy just white doors with no panels but solid core (which was an extra $65/door) for sound deadening. The total quote installed though was almost $5K!

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u/Khal___Brogo Aug 17 '22

We replaced our front door (Ourselves) right before Covid kicked in. The prehung fiberglass door with fake wood grain and a glass insert from Lowes was 686.00. I lost the little screw covers before getting around to painting the inside of the door and needed replacements. I contacted Jeld-wen who just needed proof of purchase, so I logged into my lowes account. Door is now $1103.00.

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u/question2552 Aug 17 '22

Went to go buy some plastic storage drawer-bins at Target and the prices fucking blew my mind.

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u/ghostgrift Aug 17 '22

I love how to article talks about how Target already cut prices but their stock is still falling. Cut prices, my ass! I was in there recently and the prices were shocking. I say that as someone who has showed there regularly for most of my life.

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u/i_was_an_airplane Aug 17 '22

They raised prices by 300% and then cut them by 20%

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u/natefoxreddit Aug 17 '22

The solution to high prices is high prices!

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u/sadpanda___ Aug 17 '22

Sales are down due to high prices - better raise those prices to compensate for not meeting quarterly earning targets

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u/DTsniffsIvankasfarts Aug 17 '22

Don't forget to lay off 10-15% of your frontline workers, refuse to give the stores even a half hour more to staff them, and discipline like there's no tomorrow for not meeting impossible metrics. Bringing in shitty pizza every third Saturday should placate the hourly chattel.

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u/sadpanda___ Aug 17 '22

Don’t forget to have secret shoppers come in to rate your employees ability to push certain products and “make a connection.” And fire those that don’t pass the secret test that some unqualified fuckwit who can’t get a real job gives

“Why doesn’t anyone want to work”

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u/DTsniffsIvankasfarts Aug 17 '22

They'll just automate the customer facing jobs. And I guarantee you that won't have any pushback from your older shoppers who may be desperate for human contact. It will also make shoplifting much easier. Hope the theft rings come up with a way to steal the robots.

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u/sadpanda___ Aug 17 '22

They didn’t even do that. They just spent money on a consulting firm that came in and told us to “run leaner” and then corporate decided to not replace any of the laid off staff and to demand the rest of us “just suck it up.”

So now I just come in from 8-5, get done what I can, and then leave. If shit hits the fan, I don’t care, I’m gone at 5.

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u/kensingtonGore Aug 17 '22

Including the lifestyles of the target executives

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u/BedWetter420 Aug 17 '22

But between prices of goods and target executives lifestyles, only one of those is going to change.

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u/Tatunkawitco Aug 17 '22

Isn’t people not shopping a great way to bring down inflation? Supply and demand says if their profits are down because people aren’t shopping, they have to lower prices to get people to buy their inventory.

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u/mythrilcrafter Aug 17 '22

Which is actually what Wal-Mart announced that they're going to be doing.

Everything got stuck in shipping, prices went up, people stopped buying, prices went up even more to keep up with metrics, people stopped buying even more....

Then everything got through shipping basically all at once (hence why so many locations have/had entire pallets of products just sitting in the walkways) and how they have basically 8-16 months of products that are either out of season or are too expensive for people to buy.

No employees left to layoff, no more hours to cut because they'd basically be left with a derelict store, all that's left to cut is prices otherwise they'd have to ship it all back at a complete loss. Except they can't even ship it back because the distributors/manufacturer's don't want it back.

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u/midwestraxx Aug 17 '22

Sounds like typical poor business management that's oh so common these days. We honestly need to not bail out the major companies and let the fire burn to help the system rebalance itself, just as they allowed small businesses to do. Burn out the rot and let new life grow. Refusing to let these companies die is like keeping a dead limb, either you cut it off or the whole body dies.

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u/RogueAOV Aug 17 '22

Is "inflation-weary" the new way of saying broke as fuck.

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u/jkrushal Aug 17 '22 Wholesome Seal of Approval

Just like "millennials not buying houses" is the new way of saying that we've broken the economy for future generations.

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u/yunghollow69 Aug 17 '22

I prefer the "millennials aren't buying diamonds and jewelry" one.

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u/mythrilcrafter Aug 17 '22

That one is one of my personal favorites because everyone I know, no matter which generation they're from, knows that that's just De Beers complaining about how no one wants to buy their overpriced blood diamonds anymore.

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u/Work-Safe-Reddit4450 Aug 17 '22

There's also so many better stones you can get that are actually intrinsically beautiful and not "hurrr this is special because a massive conglomerate decided to artificially inflate the price of it, durrr"

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u/ilikemycoffeealatte Aug 17 '22

At one point I had my eye on a lovely moissanite ring that cost less than a month's rent.

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u/TaquitoPrime Aug 17 '22

Bought my wife's engagement ring off Etsy from some jeweler in Israel - less than the cost of rent and wife of 4 years can't stop talking about how much she loves it.

If you're buying shiny rocks with the big price tag, do you, but you really don't have to.

Edit: I'm realizing inflation since 2015, when I got engaged, is 25%. My God.

GEN-ZERS: If you're getting engaged, just make something special lmao

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u/Energylegs23 Aug 17 '22

I like the "Millennials aren't having kids" myself

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u/cote112 Aug 17 '22 Helpful All-Seeing Upvote

Plunges 90% from some of the highest profit periods of the past generation.

So basically back to normal.

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u/MDPhotog Aug 17 '22 edited Aug 17 '22

This context is really important. We keep seeing these double-digit YoY drops, but the reality is that if you compare things to covid (YoY) you're going to see crazy numbers. For example "house market is crashing 25% drops in prices!" Well, covid prices doubled so we're still sitting at prices much higher than pre-pandemic.

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u/ProfessionalBus38894 Aug 17 '22

This is what drives me nuts about gas prices. Like comparing gas now to peak Covid of course it has doubled. The streets were empty like in an apocalypse movie. It was wild.

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u/Ray661 Aug 17 '22

Oil was negative. You could literally get oil for free if you had a place to store it.

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u/[deleted] Aug 17 '22 edited 20d ago

[removed] — view removed comment

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u/ReeferCheefer Aug 17 '22

And it doesn't literally come in a barrel, barrels of oil is just a unit of measurement.

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u/TuckBigFech Aug 17 '22

My life is a lie

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u/Jaraqthekhajit Aug 17 '22

Ah but since the oil was free I can afford the barrels. Now I just need to borrow a tanker and a refinery and then a second tanker.

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u/Training_Purpose6640 Aug 17 '22

Yep, they were paying you to take it away. Too bad i didnt had an oil tank in my backyard.

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u/lunaflect Aug 17 '22

I got gas for under $1 at the height of the pandemic. Really blew my mind. Last time I saw gas that cheap was in 1999

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u/KhabaLox Aug 17 '22

So basically back to normal.

Not quite. Q2 2022 EBITDA was 44% lower than the lowest Q2 since 2018.

https://investors.target.com/static-files/537460bf-a83e-4980-a604-1317bcd2438d

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u/imooforyou Aug 17 '22

Okay, yeah, that's pretty bad.

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u/SuchACommonBird Aug 17 '22

Oh no, they're still profiting, just not as much... Whatever shall we do!

Continued Unsustainable Growth Until Death!

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u/dinoroo Aug 17 '22

That’s actually the fix for inflation. People need to just stop buying.

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u/whichwitch9 Aug 17 '22 All-Seeing Upvote

Who knew a large chunk of the population losing disposable income would lead to repercussions for businesses dependent on consumers?

10.0k

u/InitialChicken1 Aug 17 '22 Silver Gold Helpful All-Seeing Upvote Starry

Corporations: “Please spend money.” Citizens: “Sure, if you pay me enough to-“ Corporations: “No pay! Only spend!”

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u/regeya Aug 17 '22

There's a radio station in my area that, during Bush's last year in office, ran PSAs claiming recessions were a product of mainstream media propaganda and that people just needed to keep on doing what they normally do

Like...expenses are up, pay is stagnant, everyone is maxed out, but if you stop spending the liberals have won? Huh?

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u/theKetoBear Aug 17 '22

Best way too keep change from happening is to tell gullible people not to open their eyes and take a good hard look at the world around them .

Consume Consume Consume and keep the machinery of society functioning and benefiting htose at the top most.

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u/UnfinishedProjects Aug 17 '22

I've been saying this for years lol. How can companies expect us to keep buy buy buying when they keep cut cut cutting our compensation? No one's working for fun.

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u/InitialChicken1 Aug 17 '22

Fun? I thought we were supposed to be working because “we’re like a family.”

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u/UnfinishedProjects Aug 17 '22

Avoid any job that says they're a family like the plague.

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u/whitemage82 Aug 17 '22

Treat workers like you treat family…EXPLOIT THEM!

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u/TimX24968B Aug 17 '22

"how dare you not have a god-driven urge to do an endless amount of work for me!!"

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u/Lereas Aug 17 '22

I interviewed for an engineering job in 2018 and found out there wasn't a bonus. I asked during my interview section with HR if there were any plans that this position would get one and they said maybe in the coming years, but right now it's only director and above.

I said it was kinda disappointing because even as a scrub newbie engineer out of college I had a 7% bonus target at my first company, and never heard of a company this large not having ANY bonus at this level.

Couple days later, Recruiter said they're passing on me. They liked me but thought I wasn't the right fit because I seemed like all I wanted the job for was the money.

I was like....what the fuck else was I wanting the job for? I mean I enjoy my job well enough, but you better believe if I won a huge lotto payout I'd be done working like yesterday. MAYBE I'd offer to be some kind of part time consultant just to kinda keep my brain sharp or whatever, but I'm interviewing for a job and you think it's weird I asked about comp?

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u/alexm2816 Aug 17 '22

It really isn't that bad of an earnings miss...

TGT took an aggressive strategy to offload aging inventory that it overpaid to get it's hands on which worked to perfection during the pandemic but isn't translating to a pull back. This plan was announced via their modified guidance after Q1 earnings. This report it itself was wholly expected and stock holders are on board as the stock is up 25% in the last 2 months.

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u/Zeyn1 Aug 17 '22

Yeah. If anything this shows that Target is willing to take the loss (actually just lower profit) in the short term to position themselves better for the future.

This is also just second quarter profit. Most retailers are much more concerned with fourth quarter profit.

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u/wander-lux Aug 17 '22

Target is still one of my go tos, but my dog wasn’t too pleased when I didn’t come home with his rawhide bones he loves. From $3.49…. To $7.49! What the actual hell!

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u/brigitteer2010 Aug 17 '22

Mannnn my favorite pretzels did that same price hop. Who tf pays 7 bucks for a bag of pretzels?!

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u/Mmmphis Aug 17 '22

Lemme guess — Dot’s?

Love those damn things, but they’re off our shopping list until the price comes down. It’s madness to pay that much for pretzels.

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u/eraserewrite Aug 17 '22

“The rich get richer!” -Your dog, probably

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u/CornCheeseMafia Aug 17 '22

Not target but the royal canin dog food I normally get went from $65 a bag to $85. Like what the shit

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u/ByrdmanRanger Aug 17 '22

A family member works at one of the upper end pet supply companies. The mark up on dog food is absurd

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u/BobbTheBuilderr Aug 17 '22 All-Seeing Upvote

Why don’t they just say things are going back to normal? They now have things in stock and are not making ungodly profits as they did during the pandemic that they took advantage of so we should feel bad for them?

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u/pierreblue Aug 17 '22

They got used to it and want even more lol

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u/Deep90 Aug 17 '22

If everyone in the world bought chipotle for breakfast, lunch, and dinner. The shareholders would complain how people aren't eating it 4 times a day.

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u/Toimaker Aug 17 '22

This was my thinking as well. People are going on more vacations and going out more. They are spending money on other things not just buying stuff anymore.

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u/FourWordComment Aug 17 '22

To be fair, Obi Wan Kenobi mind tricked me by asking if I’d regret the things I didn’t buy, or the places I didn’t go?

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u/sadpanda___ Aug 17 '22

Shareholders DEMAND QOQ and YOY EBIT increases. Covid sales were a windfall for these companies…and the expectation of shareholders and the boards is that they STILL need to have record profits every fucking quarter, which is completely unrealistic…but the shareholders don’t give a shit about reality

Our system is broken and unrealistic

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u/PuffyPanda200 Aug 17 '22 Take My Money

This SO MUCH!!!

It would be like one day finding a 100 USD bill on the ground on your way to work. For the 5 seconds that you used to pick up that bill you made ~72k per hour, great. Now you go home and tell your SO (stand in for investor). So demands that you now come up with a way to replicate this success. You reasonably explain that this is just a one time thing but your so won't have it and insists a change in employment is needed (stand in for 'realigned strategic synergy [insert corporate buzz word here]).

Now you 'work' by wondering the city streets looking for bills to pick up. Your cash flow is basically zero and your SO is pissed that you are not back up to earing ~72k an hour.

I personally manage a portion of my money. I don't understand how people that should be way smarter than me fall into the above trap. A great example would be Peloton, an exercise bike company that burnt cash like crazy. Sure, when people are locked away in their house they will do well. But when those people get back out to the world the windfall will be over.

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u/sadpanda___ Aug 17 '22 edited Aug 17 '22

My company laid people off one year because of this kind of shit. We had one year where a customer bought a ton of product for a certain reason. It was a one and done event and a windfall. “Hoooooraaay!!! Record year” big party at the end of the year, lots of pats on the back, good times…. Next year, we “didn’t meet our earnings target” and our CEO had to “make the tough choice.” Fired 10+% of people. That year was the second highest profits we had ever done, only second to the prior “windfall” year.

Fuck corporate America and the constant growth model. It’s all bullshit. “Why don’t people want to work” “why aren’t millenials dedicated to their employers like prior generations”…..this is why. Corporations don’t give a fuck about their employees. And that dedication they want from us is a 2 way street. When you fire 10+% of your work force every 3 years due to a blip in the market…..that’s when we stop caring about the company. Prior generations did not have this BS to deal with.

I’m only here for a paycheck these days…

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u/Uphoria Aug 17 '22

They aren't happy because, despite the workers taking home enough to be happy, and the company coffers not being empty at the end of the year, and there's no IOUs in the room, they rely almost entirely on the growth through investment to make their money.

When the stock went up from 2019 to 2022 they were making TONS of money. Now that stocks are faltering, stagnating, or falling - They aren't making the money they made the last couple of years, and so they are finding ways to rig the system to pump up their numbers to see personal wealth.

Do they care that cutting 10% of staff means families will go hungry, struggle, and have to find a new life balance around a new job and income level? No - because to them the decision was made so that their portfolio says +.02 instead of -.01.

If the company starts to fail, they'll do their best to rid themselves of it, usually relying on corporate contracts to pay them when they leave by buying out their stock at rigged prices. They basically can't fail unless they manage to be suckered into investing personally with no contingencies.

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u/essdoubleU Aug 17 '22

I love how the title frames it as the consumers fault. I also like how they make Target the victim and not the shoppers who are now poor.

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u/BananaPalmer Aug 17 '22

It's even worse than that. A big part of Target's profit problem is due to them stockpiling shit during the height of the pandemic, and now having way too much inventory that nobody wants to buy. They've put the stick through their own spokes.

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u/Cybertronic72388 Aug 17 '22 Silver Starry

Not just Target, but all these greedy bastards are going to tank the economy with their insatiable thirst for record profits and continual growth.

I get raising prices to adjust for inflation, but jacking up prices well beyond covering costs to churn out record profits while people struggle to earn enough money to live is only making things worse and ultimately self cannibalizing.

Well paid workers can afford to buy things which leads to more profits.

Underpaid workers buy less things, and this leads to less profits and jacking up prices to cover decrease in sales and continue quarterly growth will just make those remaining workers buy even less.

It becomes a vicious cycle of increasing prices and buying less because of increased prices until nobody can afford anything.

You can only lean an engine out so much before it stalls out or detonates.

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u/tehmlem Aug 17 '22

They better not take away those 6 dollar Tshirts.

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u/UrbanAbsconder Aug 17 '22

But, what are we doing to do for cheap crop tops now?

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u/Individual_Address90 Aug 17 '22

Okay make your prices cheaper then. You made record profits last year. Lower your prices or people won’t buy your things anymore. Market has spoken.

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u/nightfalldevil Aug 17 '22

Target is also not selling the same quality of stuff it was once known for. I used to walk about with some new clothing or kitchen item that I didn’t plan on buying. Those items are easy to pass on now since Target isn’t keeping with the trends

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u/Aynessachan Aug 17 '22

So glad I'm not the only one who noticed this. The quality of pretty much everything at Target has gone down significantly. The clothes feel terrible and don't fit right on me or my daughter. Used to be a great place to shop for cheap but good quality clothes....

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u/swagiliciously Aug 17 '22

It feels nice to know someone else has noticed this! I haven’t seen anyone mention this anywhere so I’m happy others have noticed the clothes at Target. Everything is paper thin, unshapely and beads within a couple washes. I think they got rid of their top clothing brands a couple years ago which explains a lot but damn it hurts to see how far they’ve fallen. I still have shirts I got in 2016 for $20-$25 and are still going decently strong. Remember the pilgrim dresses they rolled out last year? They got absolutely flamed for those online and the ones in my Target sat there untouched for months. They were like half of Target’s fall catalog…

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u/NorthernSparrow Aug 17 '22 edited Aug 18 '22

Target’s clothes have tanked more than anything else they carry, imho. Terrible styles now - I used to be able to drop by & pick up basics for work but now everything is some weird ugly trend. Also the quality is terrible now - their t shirts all fall apart now pretty quick. They used to be my go-to for basics, but no more. My local Target is still decent for produce & housewares but I no longer buy clothes there.

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u/BumbleMuggin Aug 17 '22

Once again it’s the consumer’s fault. Haha!

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u/[deleted] Aug 17 '22

Have you seen the price of paper towels lately? It’s insane! You used to be able to get a six or eight pack of Brawny paper towels for like eight bucks. Now it’s like twelve dollars, AND they shrinkflationed their packaging to where you only get 4 rolls now! Twelve dollars! That’s like three bucks for one roll! Of paper towels!!

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u/BurrStreetX Aug 17 '22

Went to Walmart the other day and an 8 pack was $20

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u/jstrife3 Aug 17 '22

Maybe they should keep better stock of Halloween items and I will buy them!

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u/PossibilityNo6714 Aug 17 '22 edited Aug 17 '22

Target is on record admitting that they over ordered/stockpiled mid pandemic products that no one wants any more. I think this is more about poor business decisions on what to order and less about inflation. Walmart is doing much better because they stayed somewhat flexible. Corporations are going to bang the inflation drum on every bad report.

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u/dancing_horse Aug 17 '22

To be fair Target isn’t blaming all of this on inflation. If you listen to their earnings call they say it’s almost all due to their inventory problems that they marked down this quarter.

It’s the media that’s banging the inflation drum.

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u/dogballet Aug 17 '22

Target doesn't actually carry many good products anymore as well. I don't know what the plan was when they stopped carrying most useful things and replaced half the store with Magnolia home shit, but I used to go to target weekly and now I go once every couple months and barely get anything.

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u/kinenbi Aug 17 '22

Their women's clothes section is abysmal now too, which really sucks because I used to get a lot of my wardrobe from there. Now all their stuff is boxy, cheap looking, and more expensive. There's no way they're following trends since it's all ugly.

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u/nrrp Aug 17 '22

To be clear, this is profit not revenue. Profit is revenue - expenses - investments, or what's left of the money coming in once all the bills have been paid and the necessary investments have been made. This could very well just be due to higher costs because of inflation. Just so people don't think Target lost 90% of the money coming in or something.

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u/manatwork01 Aug 17 '22

Its more likely compounding between less units sold and lower margin on goods as consumers are skitish.

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u/docmedic Aug 17 '22

Target's disappointing results came in contrast to much stronger results at larger rival Walmart (WMT), which Tuesday reported profit was down only slightly from a year earlier. Walmart also said it expects a 8% to 10% drop in annual earnings, though that's a narrower drop than it previously forecast.

So either Target’s operating costs are way higher than Walmart, and/or they charge too much.

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u/crazyplantgoth Aug 17 '22

Target overspent on product, thinking it'll all get stuck at the ports again. They have so much shit, they've been using their stores as mini-warehouses (while cutting employee hours, thus overworking and straining their current workforce and reducing the quality of in-store service) and have also resorted using third party storage to house all the excess product. They have also been upgrading their supply chain this year, particularly the warehouses involved in online fulfillment in order to better compete with Amazon.

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u/i_have_seen_ur_death Aug 17 '22

Probably both. Target is basically nicer Walmart. Better experience in exchange for being slightly more expensive. It doesn't take a genius to figure out what happens when prices go up and there's a cheaper competitor down the road.

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u/Losalou52 Aug 17 '22

Walmart stated that they had a large amount of new shoppers. People who would typically shop at more expensive stores are making the switch to Walmart to save money. That is good for them, but generally a bad sign for the economy. All of the businesses that those shoppers were shopping at will suffer. Target appears to be in that group. Also think Whole Foods type grocers and other specialty type stores. As margins decline for the stores, they will reduce staffing leading to job losses. This is front end recession stuff. It’s not great if everyone can only afford Walmart.

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u/Humble-Plankton2217 Aug 17 '22

Dear Target,

If you quit putting hideous clothes on the racks I might start buying clothes there again. Little House on the Prairie is not a good look on anyone. Also, shorts that are made of sweater material are illogical.

Sincerely,

Formerly always dressed in Target clothes but now not-so-much.

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u/kensington31210 Aug 17 '22

While they’re at it, can they ditch the modern farmhouse aesthetic that dominates their home goods? I cannot look at another photo of chip and Joanna without wanting to scream.

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u/KayBeaux Aug 17 '22

This is what I told them too. I have no interest in dressing like I’m in a fundamentalist cult!

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u/WyrdHarper Aug 17 '22

I’ve had trouble with finding good fits there since they switched from Mossimo ( I know that’s a bit old now). Their athletic and regular fits were nice, for example.

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u/DigitalPelvis Aug 17 '22

Could we just get a good solid collection of plain t-shirts? I don’t really want to support Walmart but when Target wants to make everything a crop top with frills…this mom bod is gonna have to pass on those.

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u/ImpureThoughts59 Aug 17 '22

Also they have been making ugly ass women's clothes for the last few years. But hey let's blame inflation.

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u/tessamarie72 Aug 17 '22

I'm still salty about those mossimo tank tops going away

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u/aliveinjoburg2 Aug 17 '22

I will never be over this. They had the best basics, nothing else even comes close. I’m still wear stuff from 5+ years ago.

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u/anothercar Aug 17 '22

Too bad Mossimo went to prison for bribing USC to let his daughters in...

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u/zestypesto Aug 17 '22

When the world needed him most, he went to prison for bribery 😔

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u/tessamarie72 Aug 17 '22

Wait really? What an asshole. Really liked those tanks though

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u/KimJongFunk Aug 17 '22

I tried to go to Target last month and purchase a plain, basic, white tshirt and there were none to be seen in the women’s section. I could find prairie dresses and floral crop tops and shirts with those weird cap sleeves, but no basic tshirts. It was maddening.

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u/newmoon23 Aug 17 '22

The lack of basics just about everywhere is absolutely infuriating. I have no idea who is buying this Little House on the Prairie bullshit but fucking STOP for crying out loud.

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u/DigitalPelvis Aug 17 '22

I tried to find shorts at Old Navy today. It’s going to be 106 here today. No reasonable non-workout shorts to be found. Just jeans. Can we please get plain basics back, and stock stores based on actual weather in the area the store is located in???

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u/sknolii Aug 17 '22

I feel this so hard.

All I needed was a plain white dress shirt and black slacks.. I went to 5 different stores before finding something. Insanity.

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u/i-Ake Aug 17 '22

Oh, you didn't wanna wear a crop top sweater to work? Weird...

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u/rabidjellybean Aug 17 '22

And then retailers complain when we give up and spend 10 minutes buying it on Amazon without having to drive anywhere.

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u/Buddles12 Aug 17 '22

I also feel like they’re always fully stocked like no one is buying these things?? Can’t they take the hint?

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u/gowahoo Aug 17 '22

Please, I just want a black cardigan. A simple one. Nothing fancy. No artful tears, no weird pockets or cold shoulders.

Nope, gotta knit this thing myself.

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u/MissBitchyPants Aug 17 '22 Masterpiece

It's been FLDS chic ever since covid started. I used to love shopping for clothes at Target but I don't even look anymore.

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u/Jolly-Proof Aug 17 '22

Definitely. I’d argue some of this is inflation, but maybe some of this is just Target going to shit over the past few years, and not just in the clothing department.

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u/Diresteaks Aug 17 '22

Every once in a while I will see something cute but it ends up fitting weird. It’s like target doesn’t actually design their clothes to fit real people.

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u/SoCalChrisW Aug 17 '22

My wife and I were laughing at their dresses, saying they look like they're targeting the sister-wife market now. I know nothing about fashion, but that shit is ugly.

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u/I_Eat_Moons Aug 17 '22

We went into target recently and it seems like the only women’s clothes they sell are from Little House on the Prairie. Is looking like a Pilgrim trendy now?

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u/menotyourenemy Aug 17 '22

I thought all these big retailers had lowered a bunch of prices due to overstock?

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u/damian20 Aug 17 '22

I just went to target and then Amazon fresh. Chicken breasts were $6 lb!? Like what the carne asada... But then i realize now carne asada is $18 lb

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u/Putrid-Strawberry-79 Aug 17 '22

It's upsetting that Target changed their website to hide the original price of any items on sale/clearance. I noticed a ton of products that are marked on sale but the price is literally the same as it was before it went "on sale." Am I the only one who's noticed this?

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u/iSayHeyWhatsGoingOnn Aug 17 '22

Didn't notice but that's shitty! I wonder if thats why I thought I was getting a great deal on my kids school supplies there online?

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u/DistortoiseLP Aug 17 '22 edited Aug 17 '22

but Target noted the sales on those items “put significant pressure on our near-term profitability.”

Otherwise known as "business" for a society that hasn't thought about anything but near-term profitability since the fucking 70s. That's why quarters are a thing to begin with. That's the outcome of literally any quarterly report regardless of what it says.

What other outcome do you suppose comes from a quarterly report other than pressure on near-term profits? Anything from a 1000% better than expected profit to a 90% drop in profit "puts significant pressure on near-term profits" because it's a short term profit report by definition and your company already makes all of its decisions on them anyway. '

Virtually every quarterly meeting with every client I have ever had either sums up with "last quarter was terrible and we need to see improvement next quarter" or "last quarter was great and we want to keep the momentum up next quarter." That Target could lose ninety fucking percent of their profit and come out of it with the exact same unhelpful thought as any other company regardless of circumstances does not surprise me at all.

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u/Prodigy195 Aug 17 '22

Virtually every quarterly meeting with every client I have ever had either sums up with "last quarter was terrible and we need to see improvement next quarter" or "last quarter was great and we want to keep the momentum up next quarter."

Did data analytics for a few years and this was basically every meeting I had the misfortune of sitting in. We have a bad quarter, targets were lowered and next quarter sales crushes it. Since sales did so well that quarter the target is high again and they struggle and miss target. Rinse and repeat indefinitely.

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u/azurleaf Aug 17 '22 edited Aug 17 '22

Helps explain why /r/target has been panicking about being overworked lately, paired with just not hiring anyone.

Bigwigs saw these numbers coming and slashed costs on anything they could with reckless abandon, trying to save their quarterly performance bonuses.

Edit: Honestly, thinking about it, I wonderful how useful these unofficial online communities would be for lovely corporate espionage opportunities.

Sounds like it would be a fairly predicable bellwether for results.

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u/White_Hamster Aug 17 '22

Oh no they’re still operating at a positive. What terrible news

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