- Target announced price cuts on over 3,000 items amid stiff competition.
- New CEO Michael Fiddelke leads Target's turnaround amid macroeconomic challenges and inflation.
MINNEAPOLIS — Target said on Wednesday it was lowering prices on over 3,000 products across categories, including apparel, home goods and daily items, with the latest cuts aimed at shoring up demand amid stiff competition from other retailers heading into the spring season.
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.
Target, in particular, has lagged behind other retailers, including Walmart, pressured by weaker consumer spending on its higher-priced items. Walmart and U.S. grocer Kroger have also cut prices on essentials, including groceries, to lure in increasingly value-conscious shoppers.
Shares of Target were down as much as 1.8% in morning trading. The stock has risen nearly 24% this year after falling more than 28% in 2025.
Target's forward price-to-earnings ratio for the next 12 months, a common benchmark for valuing stocks, was 14.88, starkly below Walmart's 42.06 and Costco Wholesale's 46.07, but slightly above Kroger's 13.60.
As Americans 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 has begun rolling out price changes both online and in stores. It has priced down Listerine Alcohol-Free Extra Mild Mouthwash at $4.99 from $5.99, and Toddler Fleece at $10 from $12.
The company said price reductions across categories, including baby essentials, beverages and select food items, will continue through spring.
The retailer had lowered prices on thousands of items last year, ahead of the all-important holiday season, to tempt value-hunting shoppers.
"Consumers are feeling squeezed by rising costs, especially at the pump, and that puts pressure on retailers to lean into value. Target's price cuts are a step in the right direction, but they may not be enough to recapture shoppers who've drifted to its competitors," said Zak Stambor, analyst with eMarketer.
Fiddelke told investors earlier this month that the company would spend more than $2 billion across the business this year, including $1 billion for new stores and remodels and another $1 billion on improving the overall guest experience.
Target has forecast annual sales and profit largely above estimates after beating holiday-quarter profit targets.
