Target Corp. announced it will reduce prices on about 5,000 items across its stores and website this summer. The retailer already lowered prices on 1,500 products, with the rest to take effect in coming months. The price changes will be on everyday items that consumers frequently buy, Target said.

Products will be marked with red tags in stores and online, the retailer added.

“We know consumers are feeling pressured to make the most of their budget, and Target is here to help them save more,” said Rick Gomez, executive vice president and chief food, essentials and beauty officer, in a statement. “Our teams work hard to deliver great value every day, and these new lower prices across thousands of items will add up to additional big savings for the millions of consumers that shop Target each week for their everyday needs.”

What products is Target lowering prices on?

The price changes, some of which have already gone into effect, will include milk, meat, bread, produce, diapers, pet food and other essentials, Target said. The retailer will discount products across national brands and on its own private-label brands, like Good & Gather and Everspring.

Target shared some examples of lowered prices so far:

• Good & Gather Organic Baby Spinach (5 oz) now $2.99 (was $3.29)
• Thomas’ Plain Bagels (20 oz) at $3.79 (from $4.19) 
• Good & Gather Sea Salt Roasted Nuts (9.5 oz) now $5.29 (was $6.89)  
• Clorox Scented Wipes (75 ct) now $4.99 (was $5.79)
• Huggies Baby Wipes (16 ct) now $.99 (was $1.19) 
• Aveeno SPF 50 Sunscreen (3 fl oz) now $13.19 (was $13.89) 
• Purina One Chicken & Gravy Cat Food (13 oz) now $1.99 (was $2.39) 

How is Target doing financially?

Target announced the pricing news just a few days before it is scheduled to report first-quarter earnings. 

In the previous quarter, revenue grew 1.7% to $31.92 billion, from $31.39 billion in the prior-year period. That was driven by a 1.6% growth in sales and a 9.8% increase in other revenue, Target said.

However, total comparable sales declined 4.4% over the same period. Comparable store sales declined 5.4%, while online sales fared relatively better, down only 0.7%. Online sales were boosted by strong same-day services including in-store pickup, Drive Up and Shipt, Target said. They made up more than 10% of total sales and grew 13.6% in the quarter. Drive Up sales led the growth, it said. Online sales made up 21.3% of total sales, a slight increase from 20.8% in Q4 2022. 

Meanwhile, full fiscal 2023 revenue declined 1.6% from 2022 levels to $107.41 billion. Total comparable sales also declined 3.7% in the period, and digital comparable sales decreased 4.8%. Online sales accounted for 18.3% of total sales for the year, down from 18.6% in 2022. 

Target’s competition 

Target’s competitor Walmart just announced that U.S. ecommerce grew 22% in its first quarter of fiscal 2025 ended April 30, 2024. Consolidated revenue grew 6% over that period.

The retailer attributed much of its growth in Q1 to higher-income consumers in the U.S., categorized as making more than $100,000 annually. Walmart said consumers come to it for low-priced groceries, including its private-label brands.

“Our rollback program is driving customer engagement and supporting our volume growth, with grocery rollback counts up 45% year-over-year in April,” Walmart chief financial officer John David Rainey had told investors.

Target’s new sales push could be an attempt to win over some of those same customers.

Walmart ranks No. 2 in the Top 1000.

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