Target CEO Brian Cornell says shoppers are pulling back, even on groceries, as they feel stressed about their budgets.
In an interview with CNBC’s Becky Quick that aired Thursday morning, he emphasized that the retailer has posted seven consecutive quarters of declining sales of discretionary items, such as apparel and toys, in terms of both dollars and units.
“But even in food and beverage categories, over the last few quarters, the units, the number of items they’re buying, has been declining,” he said in the interview.
And I’m arguing this is what’s happening right now, even if it’s been happening before.
Wages have risen, but that’s not even close to being for everyone, whereas almost everyone has felt the increase in grocery costs (even if some stuff fell this year)
There’s a reason food bank use is still continuing to increase, because more and more people are struggling to even afford groceries.
True, there is a reason for this. But that doesn’t mean anything that can explain it is the truth.
And the claim that it is because wages are stagnant and prices are rising is not the explanation, because wages are now out pacing inflation, and it’s just starting to ramp up now, so it’s more complicated.