Target is cutting prices on thousands of food and household items as it works to reverse its sales slump under its new chief executive.
The retail giant specifically will slash the cost of 3,000 items across those categories to help families stretch their budget during the holiday season, Target’s commercial officer, Rick Gomez, said.
Gomez said it’s one key element of its strategy to boost its value proposition during the holiday season. Target more than doubled its holiday assortment this year, adding 20,000 new gifts, but Gomez said its offering thousands of toys priced under $20. In particular, he noted that there will be affordable holiday home décor such as ornaments starting at $1, candles at $5 and throws at $10.
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“That move to reduce prices is really just one part of a much broader plan to ensure that we’re delivering great value to the consumer, given how important that is to them right now,” Gomez said.
Retailers are intensifying efforts to boost traffic in the midst of the tough economic climate that’s forced debt-laden households to cut back on discretionary spending. But Target, which relies more heavily on discretionary products, has been contending with consecutive quarters of subdued traffic, weak growth and sliding sales.
The latest quarter still wasn’t where the company wanted to be either. Sales at its stores declined 2.7% and total revenue slipped 1.5%. Adjusted earnings per share, removing the impact of restructuring costs, also fell 4% from last year.
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Michael Fiddelke, who will replace Brian Cornell as CEO in February and is aiming to steer the embattled retailer toward a more profitable future, said it’s prudent to take a more cautious approach for the rest of the year.
He told reporters the company has narrowed its full-year profit forecast, now expecting earnings of $7 to $8 per share, down from its previous estimate of $7 to $9, along with a single-digit decline in store sales.
“We saw some choppiness by month in the quarter, and we learned over time that in times of volatility, it’s best for us to be positioned cautiously,” he said.
To reverse declining store traffic and ease profit pressures partly driven by tariffs, the company cut about 1,000 corporate positions and eliminated 800 open roles in an effort to speed up business decision-making and drive growth.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| TGT | TARGET CORP. | 88.53 | +0.04 | +0.05% |
| SBUX | STARBUCKS CORP. | 83.33 | -0.36 | -0.43% |
The company also expanded partnerships with the home and lifestyle brand Magnolia, founded by Chip and Joanna Gaines, and with Starbucks on a Target-exclusive holiday drink. Starbucks is also seeking to boost traffic under CEO Brian Niccol, who took over last year and subsequently launched a turnaround strategy.
Target also said on Wednesday that it’s investing $5 billion in 2026, roughly 25% more than in 2025, that will go toward remodeling its stores and building new large-format stores as well as investing in supply chain and technology upgrades to enhance the shopping experience.
