The big-box retailer declared on Monday that, target will be lowering the prices of frequently shopped products ranging from milk to diaper to least 5,000. It is done to attract the customers having low budget. This happened due to high food prices and borrowing costs which made customers more conscious to spend money on costlier product and look for cheaper products and this forces the retailers to lower prices of goods to get more customers to their stores.
Target is currently facing a great competition with larger rival Walmart which used to offer products at lower prices. Chief food, essentials and beauty officer at Target, Rick Gomez said in a statement, “We know consumers are feeling pressured to make the most of their budget.” Target is also planning to reduce the prices of items such as meat, soda, bread, fresh fruit and vegetables, yogurt and snacks in all the market from Phoenix and Minneapolis to New Orleans and Baltimore. Target has already released its first-quarter results on Wednesday in which they cut down the prices for about 1,500 items that includes frozen chicken breast and shredded cheese and planning to take effect over the course of summer.
In the starting period of May, a source also declared that McDonald is also planning to launch a $5 meal deal in order to draw more inflation-hit customers to its restaurants.