Target Adds More Low-Cost Items to its Assortment
Continuing its emphasis on low prices, Target said last week it would be adding more than 1,000 low-cost summer items to its product assortment. The products, including swimwear, outdoor items, snacks, drinks and skin care products, will be priced as low as $1 and more than half will be priced below $15.
To encourage summer shopping, Target also debuted a virtual Swim & Sand Shop on its website and mobile app, where shoppers can see how fashion influencers model its swimwear. The retailer is also hosting in-store pop-ups so that customers can sample its summer food and beverages, and stores will play beach-inspired playlists.
On June 1, hundreds of Target stores will host events featuring giveaway beach bags, beauty carts with samples, personalized towel embroidery and more, per the press release.
Total Retail’s Take: Target is clearly trying to stay competitive by catering to consumers amid signs they are experiencing price fatigue. Indeed, consumers are challenged by persistently high inflation and interest rates, which have resulted in many of them pulling back on spending.
This latest announcement from Target comes after it previously announced it would lower prices on approximately 5,000 frequently bought items. The price cuts were concentrated in grocery staples like milk, meat, bread, fruit and vegetables, as well as paper towels and diapers, with many cuts affecting its company-owned Good & Gather and Everspring brands.
In addition to offering discounts on other merchandise, earlier this year Target launched a new affordable private-label brand, Dealworthy, for price-conscious shoppers. The brand offers various essential items, such as body wash, paper towels and cotton balls.
The signs tell us that Target is trying to attract budget-conscious consumers as its sales begin to slip. Last Wednesday, the retailer reported Q1 sales declined by 3.2 percent year-over-year to $24.1 billion. Its net earnings for the quarter dipped by 0.8 percent to $942 million.
