(VitalNews.org) – Target has just announced that they will be lowering prices on about five thousand products in their stores, including products like diapers, coffee, bread, and thousands of other everyday items. They are joining other retailers in kick-starting their business by lowering the process to a more comfortable value for those who are struggling with inflation.
Target claims they are cutting prices because “consumers are feeling pressured to make the most of their budget” according to Executive Vice President Rick Gomez. Target has already lowered prices on over one thousand products but they are looking to cut more in the coming weeks and expect that over five thousand product’s prices will be slashed.
They are expected to release their first-quarter earnings soon, but they expect to be at a lower sales amount than they were in the previous year, which marks their first decline in seven years.
With inflation still high and the U.S. economy slowing, consumer spending has remained solid, which has prompted businesses to take action. Americans are becoming a lot more frugal, which means that stores and businesses must accommodate that. The monthly household spending amount fell almost five percent, which shows that people are buying less than they used to.
Christina Hennington, Target’s chief growth officer said, “While there are some encouraging signs in the economy, there are also stubborn pressures impacting families and retailers.” She continued, “Consumers say they still feel stretched, they’re balancing a lot and having to make trade-offs to meet the needs of their families while sprinkling in the occasional luxury.”
Target is not the only retail store that is slashing prices as we’ve seen other places like Giant Food and Michaels cut their prices as well.
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