Target reports big drop in revenue. US consumers are cutting back.

Target just issued a very concerning earnings report. Stating that their sales dropped and fewer customers are coming into the store. A concerning signal about the health of the US consumer in 2024.

In particular - Target is warning that inflation-battered consumers across America are now starting to cutback on spending. A signal that the economy might not be as strong as people think. With higher interest rates set by the Federal Reserve starting to take their toll on spending.

This suggests that the economy is slowing fast. Something that is apparent to many Americans, with consumer sentiment/confidence among Americans reporting based on personal experience already being in Recession/Depression levels.

One reason confidence is declining is because of inflation. Another is because of record credit card debt and skyrocketing delinquencies. A trend observed by the Federal Reserve Bank of St. Louis.

Interestingly - Walmart, Target's rival, had a good earnings report. With sales increasing by 4% YoY compared to a 4% decline from Target. Suggesting there's different things happening in the economy based on the consumer and what stores sell.

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[ReventureConsulting]

Target just reported a -3.7% drop in same-store sales for Q1 2024.

Which is -7.2% adjusted for inflation.

Not good. But also not surprising. US consumer is tapping out amidst skyrocketing credit card debt and delinquencies. This was a matter of time.

[micheal_mills]

America is currently plagued by the hydra-headed evil duo of inflation and recession. The worst part about this recession is that consumers are racking up credit card debt. In April alone, credit card debt went up 20% while rates have doubled in a year. Inflation is so high that consumers are literally taking debt for basic life necessities. Collapse has indeed begun..

[austinbar]

A perfect storm is brewing in the United States. Housing prices, Inflation, bank collapse, severe drought in the agricultural belt, recession, food shortages, diesel fuel and heating oil shortages, baby formula shortages, available automobile shortages and prices, the price of living place. It's all coming together and it could lead to a real disaster towards the end of this year (or sooner). With inflation currently at about 6%, my primary concern is how to maximize my savings/retirement fund which has been sitting duck since forever with zero to no gains.

[RaymondKeen.]

I don’t know how but you’ve managed to package an unbiased analysis that is more entertaining than the sensationalized segment of economic and financial news. Thank you for your efforts to be the signal and not the noise. I understand that the economy is currently in a downturn and that we must wait for things to get better

[sebastiaanthijn]

Absolutely, inflation is a significant concern, especially given the current state of the global economy.

[sarawilliam]

I foresee a recession lasting 2-3 years, and if inflation continues to surge, the Federal Reserve will likely raise interest rates soon. Inflation is causing various issues worldwide, such as food shortages, scarcities of diesel and heating fuel, and significant spikes in housing prices, leading to a potential financial market crash. This global downturn could have long-lasting repercussions. Given the current inflation rate of approximately 9%, my main worry is how to optimize my savings and retirement fund, which has remained stagnant at around $300, 000, yielding almost no gains for quite some time.

[SeanTalkoff]

In these uncertain times, it's more important than ever to have a solid understanding of how to manage your finances, invest wisely and navigate economic downturns. But my primary concern is how to grow my reserve of $240k which has been sitting duck since forever with zero to no gains, sure I'm all in on the long term game, but with my savings are lying waste to inflation and my portfolio losing gains everyday, I need a remedy.

[jguyfletch]

Americans have spoken: "You'll sell nothing and be happy".

[timepeace]

We do not shop Target anymore- haven’t for over a year. We don’t need it. They can keep all their cheap stuff. Houses need less of this garbage.

[BobCollins]

"Shoppers not buying things they don't really need."

Sounds like a good thing to me.

[kwillow]

People are being gouged on rent. People are being gouged by food prices. Wages and income haven't gone up, but housing is astronomical.

[s]

Target is just an overpriced version of Walmart that has fewer choices.

[carter]

Given the re-inverting yield curve and increased market volatility, I'm reevaluating my portfolios, and the outlook is concerning. How should I reallocate funds within my $200k portfolio to navigate the potential economic downturn?

[JW-cxtg]

I've seen this movie before...right around 2007 we saw wealthy and upper middle income families start to shop at discount dollar stores and Walmarts. A year later, we were in a deep recession.

[tamaraflinn]

Washed my hands of target, two years ago. I’m done !

[CroisMoi]

Target is stupid. They turn off the lights in display cases for frozen food, so you can’t find things until you set off the sensor and the lights come on. They are doing everything they can to make it hard to shop there. They are also drastically reducing the variety of food they carry. They are forcing you to go elsewhere. I have been a target customer for over 40 years, but I am being pushed to shop elsewhere. I held my nose over their woke problem, but they are starting to wear me out.

[kimcissell]

Hyperinflation, depression, economic collapse. Over 35 Trillion dollars of unsustainable debt. 😮😢

[Silverbug]

Everything doesn’t “seem” really expensive, everything “is” really expensive

[mickygarcia]

Prices are out of control. I have personally cut back spending, but not because I cannot afford it, but because I cannot tolerate spending $5.49 on a bag of popcorn. It's irresponsible. It's like shopping at a damn theater. You should not walk away from a snack bar -$25.00. Going to the movies isn't a requirement, so it's not on the entertainment menu. The impulse buys that I would have made 4 years ago are a thing of the past and, if this keeps up, will become ingrained as habit going forward. I still purchase pork, but not beef, chicken or seafood. I'm not buying condiments. If I buy fried chicken at the counter, I'll spread it over 3 or 4 meals; not 2. These price hikes have informed me that I was eating too much anyway. 2 meals a day, not 3.

[DevonWayne]

Eggs were $1.50, but now they're $4.00... They "seem" expensive. Nah bro, they ARE more expensive 🤣