Target has slashed prices on more than 1,500 popular items. This includes things like butter and laundry detergent. They want to attract shoppers worried about high prices.
Prices dropped starting Monday. Over the summer, they will cut prices on 5,000 items. The goal is to save consumers millions on household staples. This includes milk, fresh fruit, diapers, and pet food.
What prices is target dropping from its shelves?
Both name brands, like Clorox and Prime energy drink, and house brands are affected. Prices vary by city. For example, a 75-count canister of Clorox wipes is now $4.99 instead of $5.79. One pound of Good & Gather unsalted butter is $3.79, down from $3.99.
Other big retailers like Ikea and Aldi have also cut prices recently. They want to bring shoppers back into stores and get them to spend money. Many people have been spending less because of inflation.
For the past year, shoppers have cut back as costs have risen 20% to 30% higher than three years ago. Incomes haven’t kept up, says Sarah Wyeth from S&P Global Ratings.
High prices have hurt retail sales growth.
Last month, retail sales didn’t change from March, which saw a 0.6% increase. This was reported by the Commerce Department.
In April, spending didn’t meet the 0.4% increase economists expected, according to FactSet. These figures are adjusted for seasonal changes but not inflation. A year ago, retail sales increased by 3%.
Target is also trying to boost sales, which fell last year for the first time since 2016. They will update on this year’s sales when they report earnings on Wednesday.
Like other big stores, Target’s business slowed after the pandemic peak in 2020 and 2021. Their core middle-class customers are now strained by higher prices. They are spending less on non-essentials like home decor, electronics, and clothing.
To respond, Target created a new house brand called Dealworthy. This brand aims to compete with dollar stores and Walmart. It includes 400 items, from phone chargers to disposable plates and underwear.
