Target fires off a sweeping round of price cuts

Target Corporation (NYSE:TGT) announced on Tuesday that it will reduce regular prices on more than 2,000 items across owned and national brands this holiday season, including food and beverages, everyday essentials, holiday gifts and items to prep the home for the holidays.

The retailer highlighted that consumers will be able to save on items for holiday preparations and gifting, like toys, board games, beauty products, bath towels, snacks, beverages, frozen vegetables, cookies, ice cream, toilet paper, cough and cold medicine and more.

Target (TGT) said it routinely adjusts its prices to remain competitive in markets across the country. By the end of the holiday season, Target (TGT) will have lowered prices on over 10,000 items during the year. Along with the new everyday low prices, Target (TGT) said it is making the holidays more affordable with season-long deals and a wide range of options for gifting and gathering, including its largest holiday assortment ever featuring thousands of toys with over half under $20.

The promotional stance from Target (TGT) could impact to varying degrees a wide range of retailers, including Walmart (WMT), Costco (COST), Dollar General (DG), Dollar Tree (DLTR), and Kroger (KR).

The big picture

The National Retail Federation forecast that winter holiday spending is expected to grow between 2.5% and 3.5% on a year-over-year basis to a range of $979.5 billion and $989 billion in total holiday spending in November and December. “The economy remains fundamentally healthy and continues to maintain its momentum heading into the final months of the year,” stated NRF CEO Matthew Shay said. The holiday forecast is consistent with NRF’s forecast that annual sales for 2024 will be between 2.5% and 3.5% over 2023. One major factor with this year’s holiday shopping season is that the period between Thanksgiving and Christmas will be six days shorter, totaling 26 days. Additional contributing factors this year could include the economic impact of Hurricanes Helene and Milton. The NRF said that even though the 2024 U.S. presidential election will take place during the winter holiday season, it is nearly impossible to measure its impact on current or future spending.