Target Corp. reported a bigger-than-expected 90 percent fall in quarterly earnings on Wednesday and missed estimates for comparable sales as it struggled to lure inflation-hit shoppers with steep discounts on apparel, electronics, and home goods.
A host of U.S. retailers have issued profit warnings in recent weeks as consumers squeezed by higher prices for everything from toothpaste to gas curtailed spending on non-essential items.
As Target relies more on discretionary categories, it is prone to take a bigger hit during tougher times than its rivals such as Walmart Inc., where groceries and packaged food items get more shelf space.
Walmart beat profit estimates as its core base of low-to-middle income shoppers flocked to its stores for bargains on groceries….