Target CEO Defends Against Price Gouging Claims

Target CEO Brian Cornell has strongly refuted Vice President Kamala Harris's claims that retailers are engaging in price gouging, arguing that the highly competitive nature of the retail industry doesn't allow for such practices. During an interview on CNBC, Cornell emphasized that profit margins are minimal, and Target has actually reduced prices on around 5,000 items to appeal to budget-conscious consumers. He highlighted that consumers have numerous options to compare prices, making retailers cautious about pricing strategies. Harris's proposal for a federal ban on price gouging aims to combat inflation but has received criticism for potentially exacerbating the issue. Despite the challenges posed by inflation, Target recently reported strong earnings, raising its profit guidance while maintaining a cautious sales outlook. Other retail executives have echoed concerns about the potential negative effects of price controls on the economy.