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

Target is reducing prices on over 2,000 items, immediately affecting a variety of products such as home goods, beauty products, food, beverages, and toys. The company routinely adjusts prices to stay competitive, with this discounting phase extending through December. These price reductions have rejuvenated customer spending following a challenging period for Target. Last quarter, sales at stores open for at least a year rose by 2%, and profits jumped by 36%.

Earlier, in May, Target announced a price cut on 5,000 items, eventually surpassing that target and slashing prices on 8,000 products. This year, over 10,000 items will be discounted. The latest reductions impact popular brands like Lego and Coffee Mate. While other major retailers are also adjusting strategies, overall spending at US retailers increased by 0.4% in September from the previous month.

Consumer spending constitutes about 70% of the US economy, with retail sales being a significant portion. Despite ongoing inflation and high interest rates, reports indicate that consumer spending has persisted. Nevertheless, Target is predicting a cautious year-end, projecting sales growth of up to 2%, although acknowledging it might fall short of this estimate.