Target announced on Tuesday that it is reducing prices on over 2,000 items, including snacks, toys, and cold medicine. As the holiday shopping season approaches, the American retailer has already started taking action to attract bargain-hunting consumers.
This price reduction includes nationally recognized brands such as Lego and Coffee Mate, as well as Target’s own brand, covering food, beverages, everyday essentials, and holiday gifts.
While prices vary by location, Target highlighted some of the discounted items as examples, such as the price of the Magic Bullet blender dropping from $49.99 to $39.99, and the Bluey toy fire truck going from $24.99 to $19.99.
In a press release, Target stated that the company “regularly adjusts prices to remain competitive in the U.S. market,” and the discounts will continue until December.
Amid ongoing inflation, many consumers have become more discerning when shopping. Additionally, this year’s holiday shopping season is shorter compared to last year, with Black Friday falling later. Other major retailers like Walmart, Ikea, and Aldi have also been lowering prices in recent months to attract customer spending.
This is the second time Target has lowered prices this year. In May, the retailer discounted at least 5,000 products that customers frequently purchase. The company announced on Tuesday that they anticipate over 10,000 items will be discounted before the holiday season ends.
In August, Target raised its full-year profit forecast. With the push for price reductions, quarterly comparable sales increased for the first time in over a year by 2%, and profits also grew by 36%.
Consumer spending accounts for about 70% of the U.S. economy, with retail sales making up a significant portion of that. A report last week showed that despite experiencing years of high inflation, with interest rates recently starting to decline from a two-decade high, Americans are still spending money.
According to government data released last week, retail sales in the U.S. increased by 0.4% in September compared to the previous month, which is significantly higher than the 0.1% growth in August.
Target’s next financial report is set to be released on November 20th. Before the holiday season hits, the Minneapolis-based retailer has hired approximately 100,000 seasonal workers.