- Target aims to reduce prices on a wide range of products for Memorial Day
- The company said to expect more discounts during the summer months.
- The move comes ahead of Target’s quarterly earnings report on Wednesday.
Target will reduce prices on at least 5,000 frequently purchased products in its assortment, from milk to diapers, the big-box retailer said Monday, as it seeks to attract budget-conscious customers.
Still high food prices and borrowing costs have made cash-strapped customers more conscious of their spending on big-ticket items and look for cheaper products in stores and online, forcing retailers to lower prices. to attract more consumers to their stores.
Target also faces stiff competition from larger rival Walmart, which already offers products at lower prices, and last week showed a resilient American shopper, banking on easing inflation concerns.
“We know consumers are feeling pressure to make the most of their budget,” said Rick Gomez, Target’s director of food, staples and beauty.
Other key foods, such as meat, bread, fresh fruits and vegetables, will be discounted during Memorial Day weekend. Soft drinks, various snacks and yogurts will also drop in price, Target said.
Target is cutting prices on items like meat, fruits, vegetables, snacks, pet food and more.
As earnings season begins to wind down, Target will report its quarterly results on Wednesday and appears to be betting that the price cuts will contribute to a positive outlook going forward.
Target shares are up nearly 12 percent so far this year and the retailer said it has already made 1,500 items cheaper, including frozen chicken breast and shredded cheese, with more price cuts coming later. of 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 new discounts are in addition to price cuts it had already planned for Memorial Day weekend.
Target Circle Card members will get an additional 5 percent discount at checkout and will be 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 risk by offering limited-time specials to appeal to cash-strapped Americans.
McDonald’s just introduced a $5 summer meal kit and Wendy’s is heavily promoting its 50-nugget bucket.
Target is rolling out new scanners to combat theft at its self-checkout machines, which will roll out to 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 there were 17 million households that would struggle to pay for 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 declined throughout 2023.
Price growth remains higher than before the pandemic, registering 3.4 percent to April 2024.
While companies try to attract customers facing stubbornly high prices, they also have to deal with the rise in retail theft.
In major cities like New York and Los Angeles, shoplifting has increased more than 60 percent.
Major retailers are responding in a variety of ways, with Target recently cracking down on self-checkout due to its unique vulnerability to theft.
Shoppers can now only bring 10 items to the self-checkout scanner at Target.
Target is also rolling out new scanners to its self-checkout machines, which will roll out to all stores by the end of the year.