After its biggest earnings miss in two years and stock plunge, Target laid some of the blame on the recent U.S. ports strike, citing higher freight costs it absorbed as a result of preemptive action to move more product into the U.S. ahead of October. But cargo container trade data reviewed by CNBC tells a more nuanced tale.
Joe Feldman, senior managing director for retail consultant Telsey Advisory Group, said everything that went wrong for Target will contribute to the continued discounting. The retailer accelerated and rerouted shipments to the West Coast to avoid the East Coast and Gulf Coast port strikes, while also anticipating stronger demand for discretionary goods, which pressured costs and left the company with elevated inventory levels.
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