Leading general merchandise and grocery retailer Target Corporation (TGT) is experiencing a notable drop in sales of clothing, home goods, and other discretionary items. This slump represents a significant portion of the company's overall revenue.
More than half of TGT’s merchandise is discretionary. TGT’s primary customer base consists of middle-income households experiencing financial strain due to inflation and escalating costs. Citi analyst Paul Lejuez fears that TGT's high exposure to discretionary sales could be detrimental in the current macroeconomic backdrop.
