Target shares dive on earnings outlook, price cut plans

New York

TARGET Corp said on Tuesday it will rely more on low prices to compete with rivals such as Walmart and Amazon, admitted many of its stores needed freshening up, and told Wall Street its sales and profit estimates for 2017 are too high.

Shares of the retailer plunged to 21/2-year lows in heavy trading. Many of its rivals fell, too, including deep discount chains that will now face tougher competition on prices. For investors, the news was a shocking reminder that US retailing remains a cut-throat business.