Target recently announced it has lowered its prices on thousands of items, a news report which resulted in its stock price falling more than 3 percent. In a company blog post, Target noted it has put its “prices and promotions under the microscope.”
“We want our guests to feel a sense of satisfaction every time they shop at Target,” says Mark Tritton, Target executive vice president and chief merchandising officer. “Part of that is removing the guesswork to ensure they feel confident they’re getting a great, low price every day. We’ve spent months looking at our entire assortment, with a focus on offering the right price every day and simplifying our marketing to make great, low prices easy to spot, all while maintaining sales we know are meaningful to guests. And guests are taking note, appreciating much easier, more clear — and more consistent savings — at Target.”
To do that, the company has researched the products guests find most important so that they’re priced right daily, including grocery prices. Target has also eliminated more than two-thirds of its price and offer call-outs — such as the “Weekly Wow” and “Bonus Offer” signs — so customers can enjoy clearer messaging. Stores will still offer promotions, but limit them to the “best, most compelling sales,” according to the blog post.
After the blog post was published, Target’s stock prices dipped with shares 3.5 percent lower on Friday. Walmart fell 2.1 percent and Costco lost 2.1 percent during the same time frame.
Late last month, Target announced it had decided to merge its Cartwheel app into its main flagship mobile application. In addition, the company has set its focus on adding additional features to its app format, such as in-store maps leading consumers to locations of Cartwheel deals. Target also plans to bring a mobile payment option to the mobile app by early 2018.