U.S. retail giant Target announced on the 29th that it will cut prices on about 2,000 items, including household goods, apparel and accessories. With the holiday shopping season approaching, the move aims to draw in shoppers who are holding back on spending amid soaring gasoline prices, and the company will lower prices on clothing, shoes and bedding as well as run weekly sales. The company said it has cut prices on more than 10,000 items over the past year, including an announcement in March of this year to reduce prices on more than 3,000 items, and with those cuts as a tailwind it has maintained strong results over the past three quarters, raising its full-year sales forecast in August. Chief Merchandising Officer Cara Sylvester noted that customers are demanding good products at significantly lower prices. Rival Walmart also announced price cuts on about 11,000 items in August, and such reductions are coming one after another, with Walmart saying it would use tariff refunds to fund the cuts.
Target CorporationTarget cuts prices on about 2,000 items to spur holiday spending, pressuring its own product margins.
Walmart Inc.Walmart is cited as a rival that also cut prices on about 11,000 items in August, funded by tariff refunds.
