NEW YORK — Target is slashing prices on more than 2,000 items, marking the second time this year that the retailer cut customer costs as it attempts to attract inflation-weary shoppers ahead of the holiday shopping season.
Several items, including home goods, beauty products, food, beverages, and toys, have dropped prices effective immediately. In a press release, Target said it “routinely adjusts its prices to remain competitive in markets across the country,” and the discounting will continue through December.
Target’s price cuts have boosted customer spending after a string of dreadful quarters for the company. Discounts helped turn around Target’s fortunes: Sales at stores open at least one year increased 2% last quarter, and its profit boomed 36%, according to its most recent earnings report.
In May, Target announced it would slash prices on 5,000 items but surpassed that number, cutting prices on 8,000 products. In total, this year, the retailer will have discounted more than 10,000 items.
The new round of cuts affects name brands like Lego and Coffee Mate, as well as its house brands. Although prices vary depending on city, Target highlighted some examples with a Magic Bullet blender reduced to $39.99 from $49.99 and a Bluey fire truck toy dropping to $19.99 from $24.99.
Other major retailers, like Walmart, Ikea and Aldi, also have been reducing prices in recent months in an attempt to entice customers to spend money, since many have become more selective in their spending because of inflation.
However, there’s some good news for stores: Spending at US retailers climbed 0.4% in September from the prior month, according to government data released last week. That was much stronger than August’s 0.1% gain.
Consumer spending makes up about 70% of the US economy, with retail sales comprising a sizable chunk of that. Last week’s report shows that Americans are still opening their wallets despite years of elevated inflation and interest rates that have only recently begun to come down from a bruising two-decade high.
Still, Target signaled a cautious outlook for the rest of the year, a sign it expects consumers continue to spend carefully. The company expects sales to rise by up to 2% this year but said it likely could come in lower than that.
The next earnings report for Target (TGT) will be released on November 20.
Brides, families fighting for refunds after event venue closes suddenly
“We’ve struggled so hard to scrape the money to be able to do this for her,” Irizarry said. “She’s my only girl and I wanted this so much for her.”
Couples and families who had weddings and events planned at a well-known venue that abruptly closed claim they’re out thousands of dollars and aren’t being given refunds. Annette Irizarry was supposed to hold her 15-year-old daughter’s quinceañera in August at the Clearwater location and said she’s now out the $6,160 she paid. Without that money, Irizarry said she can’t afford to have her daughter’s celebration somewhere else.
