As a warning to the retail sector, Target anticipates a surprisingly weak holiday shopping season. Target reduced its profit forecast on Wednesday, and the company predicted that sales would be flat in the year's last quarter. Additionally, Target's most recent quarter saw a weak 0.3% increase in sales. Target's (TGT) stock fell up to 20% in pre-market trading on Wednesday. 

Target is a good indicator of consumer spending patterns and the retail industry overall, and the negative news caused rivals' stocks to drop on Wednesday as well. For retailers, the holiday shopping season is crucial. While many smaller businesses rely on robust holiday sales, Target can weather a weak holiday season. Target's primary middle-class clientele is the reason for its difficulties.