Target is cutting prices on 2,000 items ahead of the holiday shopping season

Channel 3000 News/CNN ^ | October 22, 2024 | CNN Staff

[Diana in Wisconsin]

Target is slashing prices on 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.

Some prices have dropped effective immediately on a number of items, including home goods, beauty products, food, beverages and toys. 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 was going to slash prices on 5,000 items but ended up surpassing 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.

*SNIP*

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.

[Diana in Wisconsin]

Listen! I just POST the articles. I can’t be expected to READ them, LOL!

“The next earnings report for Target (TGT) will be released on November 20.”

I’ll bet you a doughnut that the ‘36% increase in profit’ is going to be adjusted down, just like Mother Government does with HER bogus ‘earnings reports.’

[Diana in Wisconsin]

“Remember them kicking out the Salvation Army Red Kettles during the Christmas holiday.”

THAT and the bathroom/dressing room stupidity did it for me.

[voicereason]

They must have huge revenue if they can do this twice in a row.

Sounds more like a way to burn excess inventory/slow moving products, thereby freeing up cash. The other option is to lower profits while improving cash flow/churn. Would need to see the financials to better get a sense of what they are doing.

But as the article states, other retailers are also doing this as well, so it could be a race to the bottom and only the strongest will survive