Retail news that keeps industry pros in the know
Retail Brew delivers the latest retail industry news and insights surrounding marketing, DTC, and e-commerce to keep leaders and decision-makers up to date.
Another day, another price cut. Target on Tuesday announced that it will reduce regular prices on more than 2,000 items this holiday season to help customers save money on gifting and preparation. The prices getting a haircut range from essentials such as toilet paper, cold medicine, and frozen vegetables to toys, board games, and beauty products.
The retail giant had previously committed to cutting prices on about 5,000 items over the summer. It said it surpassed this number, with a total of 8,000 price reductions so far this year. This latest round of cuts should push the number to 10,000 for 2024.
“We know families are excited to celebrate the holidays, so Target is committed to helping them find joy without compromise—with great products across our assortment at even lower prices,” Rick Gomez, chief commercial officer at Target, said in a press release.
Price wars: Target’s announcement follows rival Walmart’s promotion last week of an “inflation-free” holiday meal, as well as continued discounts and promotions. Walmart has also made sweeping price cuts across categories this year. CEO Doug McMillon told shareholders over the summer that it had rolled back prices on more than 7,200 items in the US.
While Target has struggled recently due to a pullback in discretionary spending, its investment in lowering prices and offering more affordable options has started to pay off. The company returned to growth in Q2 after several consecutive quarters of revenue decline. Now it’s revving up for a big holiday, with its “largest holiday assortment ever” and plans to hire 100,000 seasonal team members.