Target to Lower Prices on 5,000 Items

Target said Monday it will lower prices on approximately 5,000 frequently bought items as it seeks to stay competitive amid signs consumers are experiencing price fatigue. The company said in a statement that the price cuts are 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. Target had already cut prices on some 1,500 other items.

Total Retail's Take: Consumers are challenged by persistently high inflation and interest rates, which have resulted in many of them pulling back on spending. In fact, many families dipped into their savings or turned to credit cards; buy now, pay later installment programs; or payday loans to pay for groceries in 2023, according to new research from the Urban Institute. This dynamic likely influenced Target's decision to lower prices on grocery staples, including its private-label brands, to attract budget-conscious shoppers to its stores and website. Furthermore, Target's announcement comes on the heels of its prime competitor, Walmart, reporting strong quarterly results, driven in large part on strong grocery sales. In the battle for customers, from low income to high income households, Target is making its move through competitive pricing and an emphasis on its private-label brands.