Target Set to Post First Quarterly Revenue Drop In Six Years as Consumers Cut Spending

Target is expected to report its first quarterly drop in revenue in about six years due to a shift in consumer spending away from discretionary goods to services, such as travel and entertainment. This change has led to reduced spending on nonessential purchases like clothing and home goods, impacting Target’s business model. The company’s focus on discretionary items like clothes, electronics, and beauty products, along with recent controversies like backlash over its Pride collection, is anticipated to affect its second-quarter sales.