Target Corp. said on Monday that it would be lowering the prices of about 5,000 frequently bought items. They plan to do this again over the summer for another thousand items.
The store is competing on price with Walmart Inc. WMT, -0.15%, which is a bigger company. This is happening at a time when Americans are having a hard time with inflation, which has made food, housing, and other necessities more expensive.
Rick Gomez, executive vice president and chief food, essentials, and beauty officer at Target, said, “We know that people are under a lot of pressure to make the most of their budgets. Target TGT, -1.16% is here to help them save more.”
The store has already lowered the prices of about 1,500 items in preparation for the Memorial Day weekend. They also said that more sales will happen around July 4 and during the back-to-school and back-to-college seasons.
A statement from the company said that prices have already gone down on Good & Gather Frozen Chicken Breast, Prime Hydration Ice Pop Sports Drinks, Johnsonville Cheddar Smoked Sausages, and Good & Gather Shredded Cheese.
Good & Gather unsalted butter used to cost $3.99 a pound, but now it only costs $3.79. It used to cost $3.29, but now Good & Gather 5-oz organic baby spinach will only cost $2.99. A 16.9-ounce Prime Hydration sports drink will cost $1.99, down from $2.19, and a 14.3-ounce Jack’s Frozen pepperoni pizza will cost $3.99, down from $4.19.
Milk, fresh fruits and vegetables, snacks, and food for pets are also on the list.
Participants in Target’s Circle Card program can get an extra 5% off their purchases and be eligible for other deals.
Target’s loyalty program, Target Circle, gives members discounts at checkout, special sales all year long, and deals that are just right for them.
Target is going to report its earnings for the first quarter on Wednesday. It is expected that the company will make $2.06 per share and bring in $24.518 billion. In the same time last year, the company had EPS of $2.05 and revenue of $25.322 billion.
The stock opened a little higher than usual. It has gained 12% so far this year, while the S&P 500 SPX has gained 11%.