Target said Tuesday it would lower prices on 2,000 items ahead of the holiday season in a bid to attract customers hurt by inflation.
The Minneapolis-based retailer plans to lower prices on both national brands and its own private labels. Customers can find daily necessities such as food and medicine, as well as gifts such as toys and beauty products, at low prices.
Target is offering its largest holiday collection this year with thousands of toys, more than half of which are under $20.
The LEGO Technic 2022 Ford kit will be priced from $119.99 to $95.99, the retailer said.
Bluey Fire Trucks will retail for $19.99, down from $24.99.
Eligible shoppers can treat friends and family for less by cooking Christmas desserts in Crisco Vegetable Oil (down from $5.29 to $4.79) and serving coffee with Coffee Mate Creamer (down from $5.29 to $4.99). You can also entertain your family.
Target announced the plan ahead of a shorter-than-usual holiday season, adding pressure to an already tight industry.
Target's former vice chairman Gerald Storch said last week that holiday spending will be disappointing this year as geopolitical uncertainty leaves consumers short on savings as inflation remains high and they cut back on spending. He warned that this was likely to happen.
“It's clear that consumers are running out of money,” said Storch, who was also the former CEO of Toys R Us in the 2000s and early 2010s. he told Fox Business.. “They are increasingly stressed by inflation and the depletion of pandemic-era savings.”
When asked about his expectations for this year's holiday shopping season, Storch was candid.[I don’t expect] Frankly, there are too many. ”
This isn't the first time this year that Target has lowered prices to win back customers.
In May, the company announced price cuts on about 5,000 items.
Target said it has met this goal so far this year, lowering the price tags on more than 8,000 items.
The company expects to cut prices on more than 10,000 items this year.
“We know that families look forward to celebrating the holidays, which is why Target is offering great products across our entire assortment at even lower prices to help families find joy without compromise. We will do our best to support you.” Rick Gomez, Target's executive vice president and chief commercial officer, said in a statement. on tuesday.
Target raised its full-year profit forecast in August and reported quarterly comparable sales rose for the first time in a year as discounts and deals brought customers back to its stores.
Rival discount chain Walmart has had similar success by keeping prices low as consumers prioritize sales.
