Target cites tariff uncertainty in sales decline

Retailer Target blamed tariff uncertainty and falling consumer confidence among other factors as the operator of nearly 2,000 stores reported a 3.8% annual drop in same-store sales and a nearly 3% decline in total sales for its latest quarter.

A challenging climate spurred Minneapolis-based Target on Wednesday to project an annual sales decline in the low single digits for full-year 2025, compared with its prior guidance calling for sales growth around 1%. During an earnings call with analysts, Target Chief Commercial Officer Rick Gomez said the retailer plans to raise prices on some items in response to tariff increases, though he said price hikes are “the very last resort.”

Gomez said the retailer is seeking to minimize tariff effects with actions that include negotiating vendor arrangements, changing the timing of orders and exploring shifts in its merchandise mix and sourcing of orders based on items’ country of origin.

Outside of tariffs, Target has formed a new internal division, called the Enterprise Acceleration Office, that will seek to use technology and other approaches to simplify operations. CEO Brian Cornell said Target is making changes after falling behind competitors in several merchandise categories and posting a 1.4% annual drop in customer visits to its stores.