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Industry experts agree that the fierce competition from rivals also plays a significant role in Target's challenges. Although customer spending remains stable, shoppers are increasingly gravitating towards Walmart and Costco for better value and a broader selection of non-discretionary items. This trend poses a serious risk to Target, which leans more heavily on discretionary product sales.
External and Internal Factors
Contributing to Target's difficulties are external pressures such as tariffs imposed during political turmoil which have caused disruptions in consumer confidence. Approximately half of Target’s merchandise is sourced from international markets, and recent tariffs (10% on most imports and 145% on those from China) may force the retailer to raise prices.