Target Sales Forcast Down
Target Corp cut its monthly sales outlook for the second month in a row on Monday.
According to the Star Tribune, the Minneapolis-based company predicted that sales will rise about 2 to 4 percent this month at stores that have been open for a year or more. This is down from the 3 to 5 percent prediction earlier this month. Last month, Target predicted a same-store growth of 4 to 6 percent, which was lowered later in the month to a 1.5 to 2.5 percent increase. The actually increase was only 1.2 percent. A private equity firm from Minnetonka called Growth Venture said that consumers are cutting discretionary spending due to the poor economy.
The AP reports in USA Today that this could raise more concerns about consumer spending during the holiday season. The AP also reports that some analysts blame the warm weather and the sluggish economy for lackluster sales this fall. They believe that stores aren't able to sell boot, coats and other cool weather apparel which could be affecting sales.