FORT WAYNE, (WOWO) -Target is slashing prices on a wide range of everyday goods as it works to pull itself out of a prolonged sales slump and regain footing with budget-strained shoppers heading into the holiday season.
The Minneapolis-based retailer announced it will reduce prices on 3,000 food and household staples, a move executives say is aimed at helping families stretch their budgets during a period of high costs and shifting spending habits.
“This move to reduce prices is really just one part of a much broader plan to ensure we’re delivering great value to the consumer,” Rick Gomez, Target’s chief commercial officer, said. “We know how important affordability is right now.”
The cuts come as Target faces declining store traffic, weaker demand for discretionary products, and consecutive quarters of falling sales. In its most recent earnings report, store sales dropped 2.7% and overall revenue slipped 1.5%. Adjusted earnings also fell 4% from a year earlier.
Target, which relies more heavily on nonessential items than many of its competitors, has struggled against shoppers’ tightening budgets, driven by higher household debt and continued economic uncertainty. Executives said the company experienced “choppiness by month” last quarter and is taking a more cautious approach for the remainder of the year.
The retailer has updated its full-year forecast, now expecting earnings between $7 and $8 per share — a slightly narrower outlook than previous guidance — and anticipates a single-digit decline in store sales.
Target is also leaning on expanded holiday offerings to draw customers back. The chain has more than doubled its seasonal assortment, adding nearly 20,000 new gifts, including thousands priced under $20. Affordable home décor is a centerpiece, with ornaments starting at $1 and throws at $10.
The price reduction strategy comes amid a broader restructuring. Target has cut about 1,000 corporate positions and eliminated 800 unfilled roles to streamline operations and reduce pressure from rising costs, including those tied to tariffs.
Leadership changes are underway as well. Chief Operating Officer Michael Fiddelke will replace longtime CEO Brian Cornell in February, taking over as the company pushes to stabilize its business and reaccelerate growth.
“We’ve learned over time that in moments of volatility, it’s best to stay positioned cautiously,” Fiddelke said during a recent briefing with reporters.
Despite the headwinds, Target is planning a $5 billion investment in 2026 — about 25% more than in 2025 — to remodel stores, open new large-format locations, and upgrade supply chain and technology infrastructure. The retailer has also expanded partnerships with Magnolia, founded by Chip and Joanna Gaines, as well as Starbucks, which recently launched a Target-exclusive holiday drink.
Executives hope the combined strategy of price cuts, store improvements, and new offerings can help reverse the trend of declining visits — and convince shoppers to return.
Retail analysts say the key question now is whether consumers, many of whom remain cautious in their spending, will respond quickly enough to give the retailer the momentum it needs during a make-or-break holiday season.
