Target warns about decline in consumer spending

(CNN)– Target is warning about consumer spending and the impact of tariffs.

On Tuesday, the retail giant said consumer confidence is declining.

It said its sales declined in February and it expects sales to only grow around 1% this year.

The company also said “tariff uncertainty” will impact profit this quarter.

Target’s CEO also warned prices of fruits and vegetable could go up this week due to the tariffs on Mexico.

Target’s sluggish results come after Walmart, America’s largest retailer, recently warned 2025 would be a rocky year.