Stocks all over have taken a plunge and trucking was no exception. Target is expected to have $1 billion in incremental freight costs this year alone. Excess inventory and higher freight and transportation costs lead to reduced earnings per share. Target was hit by higher-than-expected freight costs this year and is expected to continue to increase through the next year. The products they anticipated consumers would buy are not the things being sold, confusing their supply chain demand. Along with the increase in freight costs there will also be an increase in storage fees, promotional advertising and the overall logistics required for what is to come. Target consumers are shifting the way they shop and that will shift the kinds of products coming into their stores. The beauty and clothing category are fast growing, thanks to social media. Teaming up with actress and social media influencer Tabitha Brown, Target is changing its inventory to stay in style daily.
The rapid shift in consumer spending habits were prominent during the COVID-19 shutdowns and restrictions put on countries across the globe. With the data presented and predictions and indicators in place, we hope industries will continue to plan for any situations that might be thrown to the trucking industry
