March 11 (Reuters) – Target said on Wednesday it was lowering prices on over 3,000 products across categories, including apparel, home goods and daily items, heading into the spring shopping season, as U.S. consumers struggle to afford essentials amid rising costs.
Under new CEO Michael Fiddelke, the big-box retailer is undergoing a turnaround while navigating the ongoing macroeconomic uncertainty that has plagued several consumer-facing companies.
As U.S. consumers struggle to afford essentials due to inflation and delayed food stamp benefits, companies such as Procter & Gamble, Coca-Cola and PepsiCo have also lowered entry price points to safeguard their market share.
Target will begin implementing price reductions, most of which are 5% to 20% lower than the original price, in March, the company said.
The products that would see price cuts also include baby essentials, beverages and select food items.
The retailer had lowered prices on thousands of items last year as well.
Fiddelke told the investors earlier this month that the company would be spending more than $2 billion across the business this year, including $1 billion for new stores and remodels and another $1 billion aimed at improving the overall guest experience.
Target has forecast annual sales and profit largely above estimates after beating holiday-quarter profit targets.
(Reporting by Anuja Bharat Mistry in Bengaluru; Editing by Shinjini Ganguli)
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