Target Accelerates Growth Plan With Price Cuts
Target will begin lowering prices on 3,000 items this month in its latest move to support the company’s long-term, sustainable growth.
The price reductions will generally be between 5% and 20% and will span select items across apparel, home, shoes, and “everyday essentials” such as baby items, household essentials and pantry staples, the retailer said in a Wednesday (March 11) press release.
Target will begin rolling out the price reductions this month and continue throughout the spring, according to the release.
“Busy families are thinking about value as they begin to update their homes and wardrobes for spring,” Cara Sylvester, executive vice president and chief merchandising officer at Target, said in the release. “We’re delivering by lowering prices on 3,000 spring favorites across apparel, essentials and home.”
Target’s move comes at a time when consumers are seeking bargains at off-price retailers. Ross Stores CEO Jim Conroy said March 3 that his company and other off-price retailers have gained market share from mainstream retailers and department stores.
The price reductions are the latest in a series of initiatives Target has announced under its new CEO Michael Fiddelke, a Target veteran who assumed that role on Feb. 1.
In a message from the CEO posted on Feb. 2, Fiddelke said Target’s four priorities are merchandising that brings together design, style and value, “in a way only Target can”; a guest experience that makes store visits and digital interactions “easier, more inspiring and welcoming”; technology that removes friction and helps create better experiences for guests; and investments in the retailer’s team members to build future-ready skills.
In a March 3 earnings release, Fiddelke said the company seeks to deliver “an elevated and differentiated shopping experience, advancing our use of technology.”
The digital channel remained a bright spot for Target in the fourth quarter. Comparable digital sales rose 1.9% in the quarter, while store-originated comparable sales fell 3.9%.
The company said in a March 3 press release that it aims to increase its capital investment plans by more than $1 billion in 2026, for a total of $5 billion, to support new stores, ongoing remodels, technology and supply chain enhancements.
On March 5, Target announced that it plans to open seven new stores this month, more than 30 this year and 300 by 2035 to support its growth priorities. The retailer also plans to remodel more than 130 stores this year.
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