Target has announced plans to slash prices on thousands of everyday items this summer, including essentials like diapers and milk, in response to the impact of inflation on household budgets and the growing trend of Americans paying closer attention to their spending habits.
The price cuts, which have already been applied to 1,500 items, are set to expand to 5,000 food, drink, and essential household goods in the coming months.
As more customers struggle with higher grocery prices, despite a recent cooling in inflation, Target and other major retailers are increasingly catering to their needs. Many shoppers have turned to private label brands sold by these retailers, which are usually more affordable than well-known brands. In January, Target launched its own collection called Dealworthy, featuring nearly 400 basic items, from clothing to electronics, with prices ranging from less than $1 to mostly under $10.
Target is not alone in its efforts to attract budget-conscious shoppers. Last week, McDonald’s announced plans to introduce a $5 meal deal in the U.S. next month to counter slowing sales and customer frustration with higher prices. Similarly, Walmart reported strong quarterly sales driven by an influx of customers, including higher-income households, seeking bargains.
The decision to cut prices comes as Target reported its first annual decline in sales in seven years this past March, indicating the company’s awareness of the spending pullback by shoppers. Although inflation had steadily dropped in the second half of 2023, unexpectedly high readings in early 2024 had raised concerns about the possibility of another price spike.
Target stated that the lower prices will be rolled out over the summer on both national brands and its own house brands, emphasizing that these reductions are in addition to their everyday low prices, which are routinely adjusted to remain competitive in the market.
The company is expected to provide further insight into its assessment of customer behavior and its strategies for addressing any changes when it releases its quarterly financial report on Wednesday.
The Associated Press contributed to this article.