Target inventory warning reflects retail bloodshed

Target’s inventory problem seems to be getting worse than it was a while ago. Its latest warning could portend a promotional bloodbath among retailers this summer.

retailer on tuesday lowered its operating-margin guidance 2% for its second quarter, less than half of the margin it telegraphed three weeks ago. The company said it is taking action to “right size” its inventory, which will include more discounts and order cancellations.