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Still-high food prices and borrowing costs have made
cash-crunched customers more conscious of their spending on
pricey items and look for cheaper products in stores and online,
forcing retailers to lower prices to get more consumers to their
stores.
Target also faces stiff competition from larger rival Walmart
that already offers products at lower prices, and last week
signaled a resilient U.S. shopper, betting on easing
inflationary concerns.
"We know consumers are feeling pressured to make the most of
their budget," Rick Gomez, chief food, essentials and beauty
officer at Target, said in a statement.
Target said it also plans to cut prices on items such as meat,
bread, soda, fresh fruit and vegetables, snacks and yogurt in
markets ranging from Phoenix and Minneapolis to New Orleans and
Baltimore.
The company, set to report its first-quarter results on
Wednesday, said it had currently cut prices on about 1,500 items
including frozen chicken breast and shredded cheese among
others, with more planned to take effect over the course of
summer.
The retailer also said these price cuts - which will be found
across dozens of national brands as well as Target's own private
brands - were in addition to the discounts it had planned to
offer across its stores as part of Memorial Day celebrations.
Earlier in May, a source familiar with the matter said that
McDonald's U.S. franchises also considering launching a $5 meal
deal to draw more inflation-hit customers to its restaurants.
(Reporting by Granth Vanaik in Bengaluru; Editing by Maju
Samuel)
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