Target slashed its annual sales forecast on Wednesday, after a surprisingly sharp fall in quarterly same-store sales, as customers pulled back on discretionary purchases due to ongoing worries about inflation and the economy due to U.

The retailer's CEO attributed the results to weakness in discretionary spending, declining consumer confidence, uncertainty over tariffs, and shopper backlash against the company’s decision to halt diversity initiatives.

Its sales slumped by 5.7% in the three months to May, at a time when the company also faced a backlash following a previous decision to end diversity, equity and inclusion (DEI) targets. Bosses declined to confirm any potential price rises due to higher import taxes,