Minneapolis-based Target Corp. told investors Wednesday that raising prices in the face of tariffs would be a last resort for the retailer.
Target, which has nearly 2,000 U.S. stores, reported it will work to bring value to customers in spite of the tariffs.
Target CEO Brian Cornell said the company’s “merchandising team has been working tirelessly to mitigate the impact of tariffs.”
“And the difficulty level has been incredibly high, given the magnitude of the rates we’re facing and a high degree of uncertainty on how these rates and impacted categories might evolve,” Cornell said. “We have many levers to use in mitigating the impact of tariffs, and price is the very last resort.
Rick Gomez, executive vice president and chief commercial officer for Target, said the company will also examine its supply chains.
“Now the strategies that the teams are employing as we speak include diversifying the country of production, half of what we sell comes from the U.S.,” he said. “But beyond that, we have the most control of where we produce when it comes to our own brands.”
Walmart said last week that it planned to raise prices because of tariffs. Last Thursday, the world’s largest retailer said the tariffs were too high and too broad for it to absorb on its own. Walmart CEO Doug McMillon told shareholders that tariffs will increase consumer costs no matter how hard the giant retailer tries to keep them down. McMillon said given the “magnitude of the tariffs,” the retail giant won’t be able to protect consumers from higher prices.
“We will do our best to keep our prices as low as possible. But given the magnitude of the tariffs, even at the reduced levels announced this week, we aren’t able to absorb all the pressure given the reality of narrow retail margins,” McMillon said during the company’s first quarter earnings call.
President Donald Trump warned Walmart not to raise prices.
“Walmart should STOP trying to blame Tariffs as the reason for raising prices throughout the chain. Walmart made BILLIONS OF DOLLARS last year, far more than expected,” Trump wrote on Truth Social over the weekend. “Between Walmart and China they should, as is said, ‘EAT THE TARIFFS,’ and not charge valued customers ANYTHING. I’ll be watching, and so will your customers!!!”
