Target Corp. may need to raise its prices significantly, potentially at nearly twice the rate of big-box rival Walmart Inc., in order to cushion the impact of tariffs on its business, according to Bank of America (BofA) analysts.
The U.S.’s trade wars are causing uncertainty for retailers like Target, with higher import exposure due to tariffs making it harder for them to keep costs low. BofA analysts warn that if prices don’t rise sufficiently, the company’s sales and digital growth could suffer.
This comes as BofA downgraded Target’s stock in a recent note, citing concerns over its performance compared to peers.
Source: https://www.marketwatch.com/story/target-might-need-to-raise-prices-nearly-twice-as-much-as-walmart-to-cushion-tariff-impact-analysts-say-7ede7247