Unlock Premium Data: Up to 50% Off InvestingProCLAIM SALE

Target lowering prices on 5,000 items in bid to lure more shoppers

Published 05/20/2024, 07:12 AM
Updated 05/20/2024, 07:15 AM
© Reuters. FILE PHOTO: Customers shop at a Target store in Arvada, Colorado February 24, 2009. REUTERS/Rick Wilking/File Photo

(Reuters) - Target will be lowering prices on at least 5,000 frequently shopped products across its assortment ranging from milk to diapers, the big-box retailer said on Monday, as it looks to attract budget-stretched customers.

Still-high food prices and borrowing costs have made cash-crunched customers more conscious of their spending on pricey items and look for cheaper products in stores and online, forcing retailers to lower prices to get more consumers to their stores.

Target also faces stiff competition from larger rival Walmart (NYSE:WMT) that already offers products at lower prices, and last week signaled a resilient U.S. shopper, betting on easing inflationary concerns.

"We know consumers are feeling pressured to make the most of their budget," Rick Gomez, chief food, essentials and beauty officer at Target, said in a statement.

Target said it also plans to cut prices on items such as meat, bread, soda, fresh fruit and vegetables, snacks and yogurt in markets ranging from Phoenix and Minneapolis to New Orleans and Baltimore.

The company, set to report its first-quarter results on Wednesday, said it had currently cut prices on about 1,500 items including frozen chicken breast and shredded cheese among others, with more planned to take effect over the course of summer.

© Reuters. FILE PHOTO: Customers shop at a Target store in Arvada, Colorado February 24, 2009. REUTERS/Rick Wilking/File Photo

The retailer also said these price cuts - which will be found across dozens of national brands as well as Target's own private brands - were in addition to the discounts it had planned to offer across its stores as part of Memorial Day celebrations.

Earlier in May, a source familiar with the matter said that McDonald's (NYSE:MCD) U.S. franchises also considering launching a $5 meal deal to draw more inflation-hit customers to its restaurants.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.