'I love the idea': Target gets ready to slash prices as consumer spending shifts

CARY, N.C. (WTVD) -- Several major retailers are reporting rising inventories and it could result in savings for consumers.

Target just announced it would have to start slashing prices.

"I love the idea of things on sale," said Cary resident Marisa Gamelson.

The mega retailer says it's facing huge inventory and warehouses are full. The company is canceling orders from suppliers, particularly for home goods and clothing, and ramping up discounts on things that aren't moving, such as TVs.

Some retailers are left holding merchandise as people are shifting their budgets and aren't buying stuff like they used to.

Gas and grocery costs continue shooting up.

"They got really expensive," said West Raleigh resident Karen Juntilla.

"I don't think they're going to stop either," said O.D. from Cary.

Marisa Gamelson moved to Cary from California in the last year. She was trying to get away from the sky-high cost of living, but there's been little reprieve.

"To come here and then to see things slowly move as if we were in California, it's been a little frustrating," she said.

Gamelson is learning how companies are keeping costs in check.

Shrinkflation is on full display at grocery stores through Central Carolina.

Companies are shrinking packages, not the price, to sort of make up the difference of inflation.

"That blows my mind. That's exactly what I've been feeling is happening," said Gamelson. "I think I'm getting the same item, but it's less and more expensive. I couldn't figure it out. It makes me feel less crazy."

The work-around just means people end up buying more to get the quantity they need for their household.

"It's noticeable. I've had to increase our grocery budget," said Gamelson.

Inflation was up an estimated seven percent in May. S & P Global says the pace will likely keep up through September.