Target Faces Decline in Sales Performance

Target has revised its financial outlook downward following a important drop in sales for the quarter ending May 2025, attributing this decline to a “challenging market” influenced partly by new trade tariffs.

According to BBC News, the retail giant experienced a 5.7% decrease in sales during this timeframe, coinciding wiht public criticism over its recent decision to eliminate diversity and inclusion initiatives.

During a press call on May 21, Target refrained from confirming any potential price hikes due to increased import duties, suggesting that raising prices might be considered only as a “last resort.” CNBC highlighted that the company has been grappling with stagnant growth for several years and has established a new office aimed at revitalizing its performance.

Brian Cornell, Target’s CEO, mentioned that pricing strategies would hinge on efforts to source more products domestically and lessen dependence on Chinese suppliers. He emphasized that this shift is crucial for their future plans.

The majority of Target’s inventory currently comes from China. As reported by BBC News, Rick Gomez, the chief commercial officer at Target, indicated that they are actively seeking negotiations with suppliers while also diversifying their supplier base beyond China and adjusting order schedules accordingly.