New York (CNN) — Target’s problems are intensifying.

In the latest signal of trouble, the company reported sales dropped during its latest quarter, and Target cut its full-year profit guidance Wednesday. The company’s sales have stagnated for about four years, and Target said last month that it would cut 1,000 corporate employees, roughly 8% of its global workforce.

Target has proven over and over that it is poorly positioned to succeed in this uneven economy, selling the wrong mix of items for an increasingly frugal customer. Target specializes in cheap chic clothing and home decorations, but fewer customers believe they can find the best prices and deals there.

Shoppers, strained by inflation, have shifted their spending to essentials and value items. They’ve switched to Walmart, Ama

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