Part 5/8:
During the pandemic, Target's financials soared alongside booming consumer spending. The swell of revenue spurred by stimulus checks created immense pressure on the retailer to maintain growth. This became increasingly difficult as inflation began to chip away at disposable income, leading to stagnant revenue and a buildup of excess inventory that ultimately necessitated discounting—negatively affecting profitability.
Additionally, Target faced backlash from conservative customers following its second-quarter 2023 calls for reducing diversity, equity, and inclusion initiatives. The reaction was palpable, contributing to a plummet in sales—a stark contrast to Costco's 9% growth during the same period.