On Wednesday, Target CEO Brian Cornell criticized Vice President Kamala Harris' recent statements accusing retailers of price gouging and harming consumers amid rising inflation. Harris, the Democratic presidential nominee, recently proposed instituting price controls as a measure to combat inflation, which has surged during the Biden-Harris administration.
Economists largely disagree with this approach, arguing that price controls could lead to unintended consequences, such as shortages and reduced investment.
During an interview, Cornell was asked directly whether Target had increased its profits through price gouging and how widespread he believed such practices were in contributing to the recent 40-year highs in inflation.
Cornell dismissed the notion, emphasizing that Target has been focused on reducing prices rather than inflating them. “We've actually reduced the prices of approximately 5,000 items,” Cornell stated.
The Target CEO further highlighted the competitive nature of the retail industry, underscoring that it is a “penny business” with slim profit margins. “Is there a more competitive space than retail?” Cornell asked rhetorically, pointing out that while Target celebrated achieving a margin rate of over 6%, other sectors were delivering significantly higher profit margins, sometimes up to 50%.
Cornell also criticized Harris' stance on raising corporate taxes, noting that Target has invested heavily in its infrastructure since the 2017 corporate tax cuts. “When the taxes were reduced, we put our capital to work,” Cornell said, adding that Target has spent nearly $50 billion on new store openings and remodeling over 1,000 stores across the country since 2017.
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