By the end of the year, Target will have slashed prices on 10,000 items in an effort to win back inflation-weary shoppers and portray itself as a wallet-friendly destination.
Target announced price cuts on 2,000 everyday items on Tuesday as an early holiday bonus “that’ll make it even easier for everyone to save money as they embrace the magic of the season,” Rick Gomez, chief commercial officer, said in a statement.
The Minneapolis-based retailer had already lowered prices on 8,000 items this summer, well beyond its initial goal of 5,000 price cuts that came in response to Walmart rolling back prices.
Toopan Bagchi, managing director of Twin Cities retail consultancy Starship Advisors, said the cuts are “key to Target’s strategy to recapture cost-conscious consumers who drifted away to Walmart and discount retailers like Aldi due to inflation and economic uncertainty.”
“Permanent or semi-permanent changes — ‘rollbacks’ in Walmart-speak — are meant to re-establish price leadership or value perception,” Bagchi said.
Retail expert and former Target executive Chris Walton wonders whether the latest round of cuts is simply part of Target’s ongoing price war with Walmart or truly an above-and-beyond approach.
“Are they taking credit for those normal price cuts now, or actually attempting to lead the price on the market?” he said. “My hunch is they felt they got some positive momentum when they announced the summer price cuts.”
Already, Walmart, Target and Amazon have injected more sales into the holiday season with their October discount days.
