Target cuts prices on thousands of items ahead of holidays
Target Corp. is lowering prices as what is expected to be a value-driven holiday shopping season approaches.
The retailer is reducing prices on nearly 2,000 home and apparel & accessories items. Target said the latest round on cuts build on the more than 10,000 prices it has lowered over the past year.
Customers can expect to see lower prices across categories that include apparel and shoes.The average price of women's shoes, for example, is $35, down from $40 last year, with nearly 70% of new items priced below last year's styles, the company said.
The average price of kids' rain and winter boots is down approximately 15% from last year. Across home, prices are 15% lower on average across Target’s refreshed bedding collection.
Target is reducing prices amid an uncertain economic environment, with inflation-weary and budget-conscious consumers seeking out the best deals. The company noted sluggish sales in apparel and home during its second quarter earnings call.
"Flattish growth in apparel and home isn’t what we strive for over time, and the earnings power potential of those two high-margin categories returning to a place of more sustained growth is something we look forward to,” CEO Michael Fiddelke told analysts.
The company’s next big promotion is its Circle Deal Days event on Oct. 6-7 for members of its free loyalty program. It will compete directly against Amazon's Prime Big Deal Days sales event.
[READ MORE: Amazon, Target to host dueling fall holiday sales extravaganzas]
"Guests are looking for great products at an incredible value, and that's an important part of what we aim to deliver every day," said Cara Sylvester, executive VP and chief merchandising officer, Target. "By continuing to lower prices across our assortment, we're making it even easier for busy families to create moments of joy this fall with the style, design and exceptional value they can only find at Target."
