- The goal is to reduce prices on a wide range of products for Memorial Day
- The company said it expects more discounts in the summer months
- The move comes ahead of Target’s quarterly earnings report on Wednesday
Target will cut prices on at least 5,000 frequently purchased products in its lineup ranging from milk to diapers, the big-box retailer said Monday, as it looks to attract customers on a budget.
Still high food prices and borrowing costs have made cash-strapped shoppers more conscious of spending on expensive items and seeking cheaper products in stores and online, forcing retailers to lower prices to get more attract consumers to their stores.
Target also faces stiff competition from bigger rival Walmart, which already offers products at lower prices and last week signaled a resilient U.S. consumer, betting on easing inflation concerns.
“We know consumers feel pressured to make the most of their budgets,” said Rick Gomez, Target’s chief food, essentials and beauty officer.
Other staple foods, including meats, breads, fresh fruits and vegetables, are offered at a discount during Memorial Day weekend. Soda, various snacks and yogurt will also drop in price, Target said.
The goal is to lower the price of items such as meat, fruits, vegetables, snacks, pet food and more
As earnings season begins to wind down, Target reports its quarterly results on Wednesday and appears to be betting on price cuts that will contribute to a positive outlook for the future.
Target’s stock is up nearly 12 percent year to date, and the retailer said it has already made 1,500 items cheaper, including frozen chicken breast and shredded cheese, with more price cuts to come over the summer.
The discounts will be spread across dozens of national brands as well as Target’s own brands, the company said — adding that these latest discounts are in addition to the price cuts it had already planned for Memorial Day weekend.
Target Circle Card members receive an additional 5 percent discount at checkout and are offered exclusive deals throughout the year.
At a time when people’s savings accounts are drying up after the pandemic, many companies are taking a gamble by offering special, limited-time deals to appeal to cash-strapped Americans.
McDonald’s just introduced a $5 meal bundle for the summer, and Wendy’s is heavily promoting their 50-nuggets bucket.
Target is deploying new scanners to combat theft at its self-checkout counters, which will be rolled out across all stores by the end of the year. It also now limits self-checkout customers to 10 items or less
This comes as the U.S. Department of Agriculture estimated that there were 17 million households struggling to afford food in 2022, which was a 2.6 percent increase from the previous year.
The consumer price index, which measures inflation, peaked at 9.1 percent in June 2022 and fell over the course of 2023.
Price growth is still higher than before the pandemic, clocks in at 3.4 percent from April 2024.
As companies try to appeal to customers facing persistently high prices, they are also dealing with increasing shoplifting.
In major cities such as New York City and Los Angeles, shoplifting has increased by more than 60 percent.
Major retailers are responding in different ways, with Target recently cracking down on self-checkout due to its unique vulnerability to theft.
Shoppers are now only allowed to bring 10 items to the self-checkout scanner at Target.
Target is also implementing new scanners at its self-checkout counters, which will be rolled out to all stores by the end of the year.
