On Friday, shares of big box giant Target Corp. TGT are slipping, down over 2% in afternoon trading on the heels of the company’s new initiative to get more customers shopping at its stores and on its website.
Following in the footsteps of rivals Walmart WMT and Amazon.com AMZN, Target has cut prices on thousands of items in its inventory, from bath tissue and cereal to baby formula, paper towels, razors, and many more items.
The announcement comes just days after Amazon began slashing prices at Whole Foods, marking the completion of its $13.7 billion acquisition of the organic grocery chain.
“We want our guests to feel a sense of satisfaction every time they shop at Target,” says Mark Tritton, Target executive vice president and chief merchandising officer. “Part of that is removing the guesswork to ensure they feel confident they’re getting a great, low price every day.”
Walmart, of course, has long been known for this kind of pricing strategy, but it will be new to Target shoppers.
“We’ve spent months looking at our entire assortment, with a focus on offering the right price every day and simplifying our marketing to make great, low prices easy to spot, all while maintaining sales we know are meaningful to guests. And guests are taking note, appreciating much easier, more clear—and more consistent savings—at Target,” Tritton continued.
Target also said that it is getting rid of more than two-thirds of its “price and offer call-outs,” which were signs with phrases like “Weekly Wow” or “Bonus Offer” on them, in favor of clearer messaging in-stores. Big savings, then, should be easier for customers to spot.
Other items that are being reduced in price include milk, eggs, crayons, and markers.
Target is currently a #3 (Hold) on the Zacks Rank, and the stock is down about 19.7% year-to-date.
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