Target announces its lowering prices on about 5,000 items in its stores. UNO Business Professor Mark Rosa says Target is hoping the lower prices will result in more customers who end up buying more items.
“Maybe buying stuff while you’re in the store that’s not so much for sale,” says Rosa, “but the things that are of interest are probably on sale, and they [Target] kind of want to be the first in line.”
Target says they’ve already cut prices on 1,500 items and plan to slash prices on hundreds household basic items like food, drinks, diapers and pet foods, which Rosa says is the logical way to go.
“They [Target] need to move major product,” Rosa added. “And the ones that would pique the consumers’ interest first is naturally the ones that you’re going through all with time: the must-have items, the paper products — like you’re saying — for the house and various food items that you would reach for routinely.”
Earlier this year, Target reported its first annual decline in sales in seven years due to factors like inflation and a seedy economic outlook. However, Rosa says Target is already proving they won’t just watch profits dip again, since, “[t]here’s plenty of evidence that that the economy is slowing, so that’s… Target is trying to step ahead of that.”
Target says the lower prices will start over summer on both national and in-house brands.
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