Target has announced to reduce its inventory to boost its profit margin and clear up some space for highly-demanded products. Surging inflation is making retail giants like Target to rethink about their supply chain and overall business strategy. Making some crucial changes can help retailers manage their shrinking profit margins and increase costs along with increasing customer satisfaction. Additionally, the retailer plans to cancel orders to rightsize its stock levels after its recent sales forecast. Target now forecasts a Q2 operating margin rate of around 2%, compared to previous guidance of 5.3%. It is also expediting customer service within its retail outlets after analysing the latest consumer trends. The retailer would readjust its pricing actions in response to inflation and increasing fuel price.
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