People shop at the Target store in Manhattan on March 5, 2024 in New York City.
Spencer Platt | beautiful images
Target said Monday it will slash prices on about 5,000 frequently purchased items as it seeks to stay competitive amid signs consumers are experiencing price fatigue.
The company said in a declare that the price cuts are focused on grocery staples such as milk, meat, bread, fruit and vegetables, as well as tissues and diapers, with many of the cuts affecting Good & Gather brands and Everspring is owned by the company.
It has slashed prices on about 1,500 other items.
“We know consumers are feeling pressured to make the most of their budget and Target is ready to help them save more.” “Our team works hard to deliver great value every day, and these new low prices on thousands of items will add up to big savings for the millions of consumers who shop Target every week for their needs.” their daily needs.”
Because of the annual inflation rate still stuck on 3% and the Fed’s benchmark interest rate remained unchanged, many consumers start reducing spending and becoming more selective about what they buy.
“Consumers are even more discriminating with every dollar they spend when they are faced with rising prices,” McDonald’s CEO Chris Kempczinski said during the company’s conference call in late April. high in daily spending”.
One of Target’s main competitors, Walmartrecently signaled that even higher-income consumers are turning to its products like “wallet is still tight.”
“We have customers coming to us more frequently than before and newer customers that we traditionally haven’t had, and they’re coming to Walmart whether it’s an online virtual store or a physical store.” our economy.” stores,” said Walmart Chief Financial Officer Jack Rainey in an interview with CNBC.
