Aim for a consistent outcome as shoppers stick to the essentials

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American consumers stick to simple shopping and Retailer Profits Suffer. The Wall Street Journal reports that new sales figures from Target, Home Depot and other retailers show that shoppers are moving away from discretionary items like electronics and home projects, and instead focusing on household necessities.

Target’s same-store sales, including physical stores and digital channels, were flat last quarter as consumers became more cautious, using more detergent and fewer toys. Sales at Home Depot fell last quarter, and the home improvement retailer says its full-year sales could fall for the first time since 2009.

The shift to household staples is already spreading across all distribution channels, and there are signs that imports of high-priced items such as household appliances are slowing.

However, Target has been able to take some of the strain off its supply chain through lower freight costs and has benefited from higher product prices and fewer digital sales, which tend to have lower margins.

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