Target Set to Post First Quarterly Revenue Drop in 6 Years as Consumers Cut Spending

Target Set to Post First Quarterly Revenue Drop in 6 Years as Consumers Cut Spending
A customer leaves one of the stores of discount retail chain Target in Ancaster, Canada, on Jan. 15, 2015. Peter Power/Reuters
Reuters
Updated:

Target is expected to post its first quarterly drop in revenue in about six years when it reports results on Wednesday, as the big-box retailer reels from a shift in consumer spending away from discretionary goods to services.

In recent months, consumers have been spending more on services such as travel and entertainment, while cutting down on non-essential purchases including clothing and home goods amid high inflation.