Target Charges Suppliers More to Help Offload Unsold Inventory

Target  is asking many suppliers to take on up to an extra 3 percent to 5 percent of the cost of promotions and price cuts after slow sales so far this year. Retailers often use price discounts combined with promotions to sell slow-moving items and make room for newer products. Suppliers also have their own offers and advertising, and usually negotiate with retailers on how the cost of these promotional budgets will be split.