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Target Fires the Latest Shot in the Retail Value Wars

Target announced it will be slashing the prices of some 2,000 products, including food, beverages, gifts, and other home-holiday essentials.

Photo of a Target store
Photo by Mike Mozart via CC BY 2.0

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With Halloween around the corner, Target is brandishing a machete. 

On Tuesday, the big box retail giant announced it will be slashing the prices of some 2,000 products, including food, beverages, gifts, and other home-holiday essentials. The news comes as retail players prep for what’s poised to be a leaner holiday shopping season.

Season of Discounting

First things first: We know for a fact that this holiday shopping season will be leaner. Because Thanksgiving falls so late in November this year, there will be five fewer shopping days than usual between Turkey Day and Christmas. Meanwhile, many retailers are pricing in a slowdown leading up to and after the US presidential election (hasn’t anyone heard of stress snacking and stress shopping?). All while inflation continues to weigh on weary shoppers. All told, the National Retail Federation projects US retail spending in November and December to increase between 2.5% and 3.5% compared to last year, trailing the 3.9% and 4.7% growth rates of 2023 and 2022, respectively.

Nearly 60% of respondents in a recent Bank of America consumer shopping survey said they’d be conducting more of their holiday shopping in discount stores compared to last year, and Target wants them to feel at home: 

  • Target’s holiday markdowns are just the latest round: In May, the company said it was cutting prices on around 5,000 items, which it has since upped to 8,000 items.
  • Meanwhile, last week Walmart announced its “inflation free” Thanksgiving meal discount — with prices below last year’s — at around $7 per person. Aldi has similarly announced a Thanksgiving meal deal that it says will cost around $5 per person.

Beyond the Grave: As Target and its competitors search for fresh ways to thrive, one dearly-departed retailer will soon come back to life. This week, a year after filing for bankruptcy, Bed Bath & Beyond announced a comeback. Parent company Beyond is investing $25 million into home decor and furniture retailer Kirkland’s (not to be confused with Costco’s Kirkland brand), and will receive in turn a licensee agreement for new, smaller-format Bed Bath & Beyond stores across the US. Just in time for Halloween, it’s the night of the living dead retailers.