There's a big shadow hanging over what is typically the biggest week of the year for retailers — a shadow with a very specific Target shape.
Target Corp. announced Nov. 16 during its quarterly earnings report that while sales were up for the third quarter, those sales were below expectations and it is preparing for an expected slowdown in consumer spending by trimming its costs.
"The company announced today it was undertaking an enterprisewide effort to simplify and gain efficiencies across its business with a focus on reducing complexities and lowering costs while continuing to support its team," the Minneapolis-based retailer said. "The company believes it can save a total of $2 to $3 billion over the next three years through this work."
Target officials did not specify where it expects to see those savings, but Chief Financial Officer Michael Fiddelke said executives are "in the initial stages" of exploring ways to cut costs and they will share more at a later date in 2023.