Target is launching its cheapest Thanksgiving meal yet — at $5 per person.
The supermarket is undervaluing rival Walmart with the deal and moving closer to matching the food offered by budget retailer Aldi.
At $20 for four people, Target’s Thanksgiving meal is also $5 cheaper than last year.
It’s the latest addition to a growing holiday price war between retailers, such as Cash-strapped Americans are looking for more and more cheaper foods.
Walmart’s deal costs $7 per person, while Aldi said its meal marks “the return of pre-inflation prices,” offering a full meal for 10 people for less than $47, or $4.70 each. .
At $20 for four people, Target’s Thanksgiving meal is $5 cheaper than last year.
Sam’s Club, Walmart’s members-only retailer, also announced its Thanksgiving meal deal earlier this month, which feeds up to 10 people for under $100.
And unlike the deals offered by other supermarket brands, this dish can also be delivered pre-cooked.
Target’s meal, however, includes all the traditional Thanksgiving side dishes, including turkey, russet potatoes, green beans, and stuffing mix.
It includes a mix of items from Target’s Good & Gather label and well-known brands, like Campbell’s cream of mushroom soup and Heinz homemade roast turkey gravy.
“One of the themes we hear constantly is the need for affordability, so we’re committed to prioritizing that and making sure we’re offering affordable options,” said Rick Gomez, Target’s chief commercial officer. cnn.
Food price inflation has begun to cool in recent months. In September, food prices rose at an annual rate of 1.3 percent.
But in the past five years, food prices have risen 20 percent, according to data from the Department of Labor, meaning many American households are still feeling the squeeze.
But there is some relief for shoppers, who can expect to pay 16 percent less for their Thanksgiving turkey this year. This is stated by Wells Fargo, which published its annual report report about the costs of holiday dinner favorites earlier this month.
Turkey prices could fall further if retailers decide to pass more of their savings on to shoppers, the report said, as stores compete for consumers’ money.
But it’s not all good news, as the price of ham is at an all-time high: 5.2 percent more than last year. Canned green beans, canned pumpkin and russet potatoes are also more expensive this year, according to Wells Fargo.
“Even though household food inflation has slowed to 2.4 percent since last October, this year’s celebration will not be any less expensive,” the report reads.
“This is because there are record price differentials between the wholesale price paid by supermarkets and the retail prices paid by consumers, and the difference is affecting some of the most popular Christmas dishes, such as turkey and ham.”
Target’s meal includes all the traditional Thanksgiving side dishes, including turkey, russet potatoes, green beans, and stuffing mix.
At $20 for four people, Target’s Thanksgiving meal is also $5 cheaper than last year.
Target’s Thanksgiving meal is the latest addition to a growing holiday price war between retailers as cash-strapped Americans increasingly search for cheaper groceries.
Target’s Thanksgiving announcement comes after it slashed prices on more than 2,000 items earlier this month, from snacks to toys to cold medicine, in a bid to attract bargain-hunting shoppers this holiday season. .
This is the second time this year that the retailer has cut prices to appeal to inflation-weary consumers as it seeks to win over customers from Walmart.
Price reductions come ahead of a shorter-than-usual key shopping period this year, and against a backdrop of frugal consumer behaviour. Together they have sparked a warning from a former Target executive that retailers will struggle.
Walmart, its target rival, has also been pushing to keep commodity prices low as increasing numbers of Americans turn to discount shopping.
Gomez, Target’s chief commercial officer, told CNN that customers have responded positively to the price cuts as they remain “eligible” in their spending.
He said customers are trying to stretch their budget in different ways. This includes buying in bulk to save money or purchasing smaller, cheaper items compared to their full-size counterparts.
Gómez added that customers “continue to prioritize the Christmas moment,” but added that “they are looking for affordable options to do so.”