(NewsWorthy.news) – Retail giant Target announced on Monday that it would be cutting prices on thousands of grocery items this summer, including diapers, bread, and coffee, as it looks to increase business by appealing to customers battered by rising consumer prices.
In a May 20 statement, Target Executive Vice President Rick Gomez said the price cuts were aimed at customers who “are feeling pressured to make the most of their budget.”
The retailer will be slashing prices on grocery items like fruits and vegetables, meat, dairy, paper towels, and even pet foods.
The company said prices on about 1,500 items have already been reduced with the remaining price cuts coming in the next few weeks.
According to Target, the lower prices would be available both in-store and on the company’s shopping app and website.
Target marked its first annual decline in seven years in 2023 when it reported a 1.7 percent sales drop for the year.
While the rate of inflation continues to ease and US consumer spending remains solid, recent signals suggest that American consumers are growing more frugal. Monthly household spending fell to just 4.6 percent in April, the lowest median rise in three years, according to data from the Federal Reserve.
In a quarterly earnings call in March, Target’s Chief Growth Officer Christina Hennington said while there were encouraging economic signs, consumers and retailers continued to be impacted by “stubborn pressures.”
Hennington said that American consumers still felt “stretched” by the economy, prompting them to “make trade-offs” on luxury spending to “meet the needs of their families.”
Cautious consumer spending has also affected other retail industries, including casual dining chains like Applebee’s, Red Lobster, and IHOP, as well as fast-food chains like McDonald’s and Wendy’s.
Last month, East Coast grocery chain Giant Foods slashed prices on hundreds of private-label items. Similarly, retail crafts supplier Michaels lowered its prices on a variety of items, including markers, pens, and paint.
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