Target is betting that strained household budgets — not flashy marketing alone — will shape where people shop for the holidays. To appeal to cost-conscious customers searching for ways to stretch every dollar, the retailer has lowered prices on nearly 2,000 items in its home and clothing categories.
Here's what to know
The latest markdowns follow about 3,000 earlier cuts in March and bring the company's total over the past year to 10,000 products, according to Retail Dive.
On the company's August earnings call, chief merchandising officer Cara Sylvester said Target is trying to keep quality intact while also offering value.
"It's always looking at both sides of the equation, and I think we have a long history of being competitive on price," Sylvester told analysts. "We've demonstrated that this year. We'll continue to do that across the board, and we're looking to bring new, affordable options throughout our assortment."
University of Michigan figures cited by Retail Dive showed sentiment slipped to its lowest point in four months, as higher fuel costs and new U.S. trade disputes weighed on households' views of near-term business conditions.
For holiday purchases that can add up quickly — including gifts, decor, and family apparel — the move underscores how central affordability could be to shoppers' decisions.
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More background
According to Retail Dive, Target CEO Michael Fiddelke said on the August call that shoppers are especially focused on price.
Target's October Circle Deal Days promotion will include discounts on holiday decor, toys, and other items, as the retailer positions the event against Amazon's Big Deal Days sale.
The same emphasis on value showed up during back-to-school shopping. Sylvester said roughly 95% of the retailer's school-supplies assortment was priced at last year's levels or lower.
Where can I learn more?
These retail stories look at how shoppers are weighing price and value at stores like Target.
• At Target, the green household essentials line shows some home basics can stay affordable.
• In used appliance stores, up to 75% off is helping households stretch budgets.
• At Tesco, after-7 p.m. markdowns show how retailers use timing to move inventory.
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