Target CEO Stands Against Price Gouging

In a recent interview on CNBC's "Squawk Box," Target CEO Brian Cornell addressed concerns over price gouging in the retail sector, particularly in light of comments made by Vice President Kamala Harris regarding inflation in the grocery industry. Cornell emphasized that the retail business operates on thin profit margins, making price gouging unfeasible. He highlighted the competitive nature of the market, where consumers have numerous options to compare prices, thus holding retailers accountable for their pricing strategies. Cornell's remarks come as Harris proposed a federal ban on corporate price gouging in the food and grocery sectors, claiming that some companies are excessively inflating prices, contributing to household inflation. In response, Cornell noted that Target is focused on providing value to consumers, particularly those managing tight budgets. He mentioned that the company has lowered prices on approximately 5,000 everyday items to attract more customers. Despite a cautious consumer environment, Target reported a 3% increase in customer traffic across its stores and website, although shoppers are spending less per visit compared to the previous year. This trend reflects a broader pattern observed among retailers like Home Depot and Walmart, where consumers are becoming more selective in their spending habits. Walmart CEO Doug McMillon also commented on the ongoing inflation challenges, particularly in dry grocery and processed food categories. He indicated that while some prices have decreased, the company is actively working to combat further cost increases from suppliers, reinforcing the need for competitive pricing in the current economic climate.