Brian Cornell announced that Target will withdraw FY 2020 guidance and will place on hold store upgrades and expansion due to an uncertain business environment. On Wednesday 25th March Target announced a 12 percent increase in sales from stores and digital channels compare with March to date in 2019. Target noted a 50 percent increase in household goods, food and beverages offset by a 20 percent decline in higher priced items including clothing. The data recorded by Target probably reflect other chains all of whom have incurred additional costs for staffing to clean and restock stores and worker benefits.
The future profitability of chains will be a function of economic recovery. Commentators including Ex-Chairman of the Federal Reserve Bank, Ben Bernanke have projected a short recession possibly extending over two quarters followed by a recovery. This sentiment was echoed by James Bullard, president of the St. Louis Federal Reserve who suggested that the economy will "take a big short-term hit but then snap back strongly". Bullard earlier forecast that unemployment may increase over the short term to 30 percent although the effect will be cushioned by the $2 trillion relief package negotiated on March 24th and finally passed by the House on February 26th.
Brian Cornell, Target CEO