You are here

Target wants suppliers to bear more of promotions costs

BT_20160609_KVTARGET9_2325446.jpg
Target, the second-largest discount retailer in the US, wants to minimise the impact of markdowns on profit in a tough year as middle-income customers make fewer discretionary purchases.

Chicago

US retailer Target Corp is asking many suppliers to take on up to an extra 3-5 per cent of the cost of promotions and price cuts after slow sales so far this year.

Retailers often use price discounts combined with promotions - such as two-for-one offers - to sell slow-