Target plans to cut prices to cut burgeoning inventory

June 7, 2022 GMT

MINNEAPOLIS (AP) — Retail giant Target Corp. plans to cut prices on some merchandise and cancel orders as the company works to reduce its burgeoning inventory.

The Minneapolis Star Tribune reported Tuesday that the company’s inventory grew 43% from February to April.

Customers may see lower prices on televisions, outdoor furniture and kitchen appliances to clear space for better-selling items.

Still, the company says prices overall may climb this summer as it wrestles with rising transportation costs. The retailer plans to address supply chain problems by adding more holding capacity near U.S. ports and working with supplies to reduce distances products travel.

Target shares fell 7% in early trading Tuesday morning.