Target's reported profit plunged 90% in the second quarter, their net income dropped to $183 million, from $1.8 billion in the same period last year.
Target have cut prices on general merchandise due to excess inventory of goods. However, consumers have had to prioritize spending on higher priced food and gasoline.
Target ended the quarter with 1.5% more inventory than it had three months earlier and 36% more than it had a year ago.
This marks the second consecutive quarter that Target's earnings have declined, the decrease was more severe than the 40% drop in the previous quarter.
Target's shares fell 3%, following the report.
