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Target warned of a weak near-term growth outlook as more Americans max out credit cards due to high inflation impacting household budgets. Target projected second-quarter sales to be flat to up 2% year-over-year, below analysts' estimates. One in three Americans has maxed out or is nearing the credit limit on at least one credit card. Discretionary spending will remain pressured in the short term as consumers spend cautiously, especially on non-essential items. Walmart also signaled consumers are spending more on essentials and stretching their budgets as inflation persists.
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