Key Moments
- Target said it is reducing prices on nearly 2,000 home, apparel and accessories items to attract budget-conscious shoppers ahead of the holiday period.
- The retailer noted these latest markdowns follow price reductions on more than 10,000 products over the past year and more than 3,000 items earlier this year.
- Walmart said it will lower prices on about 11,000 products, supported in part by $2.9 billion in tariff refunds, after reporting its slowest quarterly comparable sales growth in August.
Target Expands Price Cuts to Drive Holiday Demand
On Sept 29, Target said on Tuesday it is cutting prices on nearly 2,000 items across home goods, apparel and accessories in a bid to draw in shoppers facing tighter budgets ahead of the critical holiday shopping season.
The retailer described the move as part of its strategy to compete in a cautious consumer spending environment, where households are pressured by higher gas prices fueled by the Middle East conflict.
Broader Retail Response to Cautious Spending
U.S. retail giants including Walmart and Target have been rolling out price reductions to bolster their attractiveness to consumers who are more carefully managing their spending. Target said these new markdowns come on top of price cuts it made on more than 3,000 products earlier this year.
In August, Target raised its annual forecast after posting a third consecutive quarter of results that exceeded expectations. The company said those outcomes signaled that its initiatives to restore growth under CEO Michael Fiddelke were gaining momentum.
Comparison with Walmart’s Pricing Actions
Walmart reported its slowest quarterly comparable sales growth in August and said it plans to reduce prices on about 11,000 products. The company said these cuts are fueled in part by $2.9 billion in tariff refunds.
| Retailer | Scope of Price Cuts | Additional Context |
|---|---|---|
| Target (TGT.N) | Nearly 2,000 items in home, apparel and accessories in latest round; more than 3,000 items earlier this year; more than 10,000 products over the past year | Raised annual forecast in August after three straight quarters of stronger-than-expected results |
| Walmart | About 11,000 products | Supported in part by $2.9 billion in tariff refunds; reported slowest quarterly comparable sales growth in August |
Focus Areas for Target’s New Markdowns
Target said its latest pricing moves will focus heavily on apparel and footwear. The company plans to reduce prices on women’s, men’s, infant and toddler clothing as well as family footwear, with certain items offered at levels that are 20% or more below last year’s prices.
The retailer is also updating its bedding assortment. Target said average prices in this category are 15% lower than a year ago.
Building on Ongoing Value Strategy
The company said these cuts extend a series of markdowns implemented over the past year, noting that its latest reductions build on price cuts for more than 10,000 products during that period.
“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 Target’s chief merchandising officer, Cara Sylvester.
Target said the lower prices will come in addition to savings from its existing everyday pricing and weekly promotions.
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