Tuesday's Market Minute: Target (TGT) & Kohl's (KSS) Make For Turbulent Morning In Retail

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Target shares are missing the mark this morning after the retailer announced plans to reduce inventory and also revised its operating margin guidance. Shares were down more than -7% in premarket trading as investors digested the plan, which includes markdowns, price hikes to counteract higher fuel and transportation costs, and adjustments to supply chains.

The plan also includes heightened focus on categories like food and beauty, and less attention to categories whose demand has waned, like home furnishings. Target executives said that these decisions will result in additional costs for the second quarter, but they will eventually result in improved profitability for the second half of the year.

Meanwhile, Kohl’s (KSS) is in advanced talks to be sold for roughly $8 billion, according to news reports. The department store chain is in exclusive talks with the retail holding company Franchise Group Inc. (FRG), which owns brands like Vitamin Shoppe and Buddies Home Furnishings, for about $60/share.

The exclusivity period is expected to last for several weeks, and may not even come to fruition. But it could further shake up the already-beleaguered retail space.

This post contains sponsored advertising content. This content is for informational purposes only and not intended to be investing advice.