Target’s CEO Criticizes Kamala Harris's Claim of Retailer Price Gouging

Target CEO Brian Cornell took a firm stand against Vice President Kamala Harris’s recent claims that retailers are gouging prices and hurting consumers. During an interview on CNBC, Cornell dismissed Harris’s accusations, highlighting Target’s efforts to keep prices down while maintaining a highly competitive business environment.

Harris, who is the Democratic nominee for president, recently suggested that price controls could be implemented to combat inflation—a move widely criticized by economists. Her claims that retailers are engaging in price gouging to exploit consumers prompted a direct response from Cornell.

Key Points:

• Target CEO Brian Cornell refuted claims made by Kamala Harris that retailers are price gouging, arguing that the retail industry is highly competitive and focused on providing value.

• Target has reduced prices on roughly 5,000 items, demonstrating its commitment to affordability.

• Cornell emphasized that raising corporate taxes, as Harris supports, would harm businesses and hinder economic growth.

When asked if Target had boosted profits by gouging prices, Cornell responded by pointing out that the company had actually reduced prices on approximately 5,000 items. He emphasized the intensely competitive nature of the retail industry, stating, “Is there a more competitive space than retail?”

Cornell also addressed the company’s profit margins, noting that Target operates on a thin margin of just over 6%, a stark contrast to the much higher profit margins seen in other sectors. “We’re in a penny business,” Cornell said, underscoring the challenges retailers face in balancing costs and consumer value.

Moreover, Cornell pushed back against Harris’s support for raising corporate taxes, explaining how the reduction in corporate taxes since 2017 had allowed Target to invest heavily in expanding and upgrading its stores. “Since 2017 when the corporate taxes were reduced, we spent close to $50 billion of capital building new stores across the country, remodeling over 1,000 stores,” Cornell explained. This investment, he argued, has fueled significant growth for Target and contributed to the broader economy.

Cornell’s comments highlight a broader concern among business leaders about the potential impact of policies advocated by Harris and the Democratic Party. The suggestion that retailers are exploiting consumers through price gouging has been met with skepticism, especially in industries like retail, where competition is fierce, and margins are tight.

As the debate over inflation and economic policy continues, Cornell’s defense of Target’s practices serves as a reminder of the complexities involved in managing large-scale retail operations. It also underscores the potential risks of implementing policies that could stifle business growth and innovation.

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