Target will lower prices on thousands of everyday items to help customers save money and ensure it remains competitive, the retailer announced on Monday.
A total of 5,000 frequently shopped items will be reduced over the course of the summer, according to a company statement. It has already lowered prices on 1,500 of those products.
“We know consumers are feeling pressured to make the most of their budget, and Target is here to help them save more,” said Rick Gomez, executive vice president and chief food, essentials and beauty officer of Target, in a statement.
The announcement comes after inflation cooled somewhat in April, according to newly released data by the Bureau of Labor Statistics. Prices of goods and services rose last month but at a slightly slower pace.
But as the rate of annual inflation remains stubbornly above 3 percent, Americans continue to pull back on spending and are more selective in what they purchase. The median rise in monthly household spending dropped to 4.6 percent in April, the lowest reading in three years, according to data by the Federal Reserve.
“I do not price shop typically, however with prices consistently on the rise I will be checking out Target more,” said Kristen Fore, California mother, in a statement to NTD News.
“Reasonable prices on a few staple items will help,” she added.
Target’s lower prices will help save consumers millions of dollars on household staples and everyday items such as milk, fresh fruit, diapers, and pet food. The price reductions will be applied to Good and Gather and Everspring, Target’s popular house brands. According to the retailer, this will be helpful to families who are stocking up for Memorial Day and the Fourth of July, as well as students preparing to go back to school.
The retailer provided examples of items that will be reduced, including Clorox wipes, which normally cost $5.79 and will be reduced to $4.99. 16-count Huggies Baby Wipes are now 99 cents, a drop from $1.19.
However, other customers remain loyal to Target’s competitors, such as Walmart. The nation’s largest retailer reported strong quarterly sales last week as it continued to attract budget-conscious shoppers.
“I rarely shop Target. I don’t think this news will make me want to shop there,” according to California resident Robert Bennett.
“I still prefer getting essentials at Walmart,” Mr. Bennett said.
To cater to price-sensitive shoppers, Walmart is offering more of its popular “price rollbacks.” The temporary price cuts keep store traffic and sales strong, according to Doug McMillon, Walmart’s Chief Executive Officer.
“Our combination of everyday low prices plus a large number of rollbacks is resonating,” the executive recently told investors.
Meanwhile, in order to continue to compete with Walmart and dollar stores, Target recently created the budget-friendly Dealworthy brand. It also recently relaunched and expanded its everyday essentials brand up&up, which includes items mostly under $15.
The newly announced price cuts come after the retailer’s sluggish sales. In March, Target reported a 1.7 percent drop in sales for 2023, its first annual decline in seven years. The retailer is scheduled to release its first-quarter earnings on Wednesday.