After months of waiting for products to be delivered, Target now has an overabundance of some merchandise. The company is now trying to get rid of the products it doesn’t need.
Target will be cutting prices on some products and canceling orders of others that it had submitted, all in an effort to reduce a growing inventory, The Associated Press reported.
Items that are expected to go on sale include, televisions, outdoor furniture and kitchen appliances, the Star Tribune reported.
The sales will help clear needed space for better-selling merchandise, the newspaper reported.
Inventory from February through April increased by 43%.
Demand for items such as furniture was high during the pandemic while people stayed home but has now eased. The items also take up a lot of space in warehouses and stores.
The Wall Street Journal headlined an article last month, “American Stores Have Too Much of the Wrong Stuff.”
Shoppers are now looking to get out of the house and spend money on travel and nights out, such as buying dressier clothing, makeup and groceries, the AP reported.
Target didn’t give specifics on discounts or the orders that were being canceled, the AP reported.
Target officials said the move came after hearing competitors’ issues with having too many of some products. Target is doing the cuts now before the back-to-school and holiday shopping seasons and retail locations need space not taken up by large items, CNBC reported.
Walmart is in a similar situation, CNBC reported. The retailer said it had about 20% of merchandise it wished it did not. Walmart CEO John Furner said it will be “a couple of quarters to get back where we want to be.”
Walmart also said that people are spending more on food instead of general merchandise as the cost of necessities is rising, Fox Business reported.
There is no word on whether Walmart will take a similar path and offer similar items as Target at a deep discount in this quarter. But Walmart has already started “being aggressive with rollbacks in apparel” in the first three months of the year, according to Fox Business.
Macy’s is also dealing with excess inventory in some departments, and is marking down prices on some items, Fox Business reported.