Target plans to cut prices on thousands of consumer staples this summer, from diapers to milk, as inflation squeezes household budgets and more Americans are paying close attention to their spending.
The price cuts have already been applied to 1,500 items and will include 5,000 food, beverage and essential items. Retailers like Target are increasingly catering to customers struggling with soaring grocery prices even as inflation begins to subside. Many are switching to private label brands sold by major retailers such as Target, which are usually cheaper than name brands.
Target launched one such collection called Dealworthy in January. The collection includes nearly 400 basic items, ranging from clothing to electronics, priced under $1, with most items under $10.
McDonald's announced last week that it plans to introduce a $5 meal deal in the U.S. next month to combat slow sales and customer complaints about high prices. Walmart posted strong quarterly sales last week due to an influx of customers looking for bargains.
Target recognizes that shoppers are being held back by inflation and rising credit card fees. In March, the company reported a 1.7% decline in sales for the first time in seven years.
Target Inc. announced Monday that the price cuts will roll out to national and private brands over the summer.
“These price reductions are in addition to our everyday low prices, which we adjust regularly to remain competitive in the market and ensure our customers enjoy great value every day,” the company said in a prepared statement. Stated.
Target says customers will be able to purchase groceries such as milk, bread, fruits and vegetables at discounted prices. Items such as diapers and pet food will also be reduced in price.
Target is likely to provide more insight into what it thinks about customer behavior and how it is responding to change when it releases its quarterly financial report on Wednesday.
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AP Retail Writer Anne D'Innocenzio in New York contributed to this report.
