Storch Advisors CEO Gerald Storych Joins ‘Varney & Co’ to Discuss How Tax Rates and the Government Shutdown Will Affect Black Friday Discounts.
Target is cutting prices on thousands of food and household items as it works to reverse its sales decline under its new chief executive.
The retail giant will directly cut costs of 3,000 in all those categories to help families stretch their budgets during the holiday season, Rick’s chief marketing officer, said.
Gomez said one key aspect of its strategy is to increase its value proposition during the holiday season. Target is expanding its holiday assortment this year, adding 20,000 new gifts, but Gomez said that its offering is thousands of toys available under $20. In particular, he noted that there will be inexpensive home decor such as ornaments starting at $1, candles at $5 and throws at $10.
An employee pulls a carpenter to restock shelves at a Target store in Chicago. (Kamil KrzaCzynski/AFP via Getty Images/Getty Images)
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“That price move is just one part of a much broader strategy to make sure we’re delivering great value to the consumer, given how important that is to them right now,” Gomez said.
Retailers are stepping up efforts to increase traffic amid a tough economic climate that has forced households to cut back on spending. But Target, which relies heavily on creative products, has been struggling with consecutive quarters of traffic, weak growth and sluggish sales.
The most recent quarter was not where the company wanted to be. Its same-store sales fell 2.7% and net income fell 1.5%. Adjusted per share, minus the impact of restructuring costs, fell 4% from a year ago.
A Target employee pulls red shopping carts from a grocery store in Santa Fe, New Mexico. (Stock)
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Michael Fiddelke, who will replace Brian Cornell as CEO in February and aims to steer the beleaguered retailer into a more profitable future, said it is worth taking a more cautious approach throughout the year.
Michael Fiddelke, the current limited operating officer, will be Target’s next chief executive officer, effective February 1, 2026. (Target)
He told reporters that the company has lowered its full-year forecast, now expecting earnings of $7 to $8 to $8 to $9 to $9 to $9, and a single-digit decline in same-store sales.
“We’ve seen some cuts in the month and quarter, and we’ve learned over time that in tough times, it’s best to be cautious,” he said.
Back in Store Traffic and profitability pressures driven in part by tax rates, the company cut 1,000 corporate positions and eliminated 800 open roles in an effort to accelerate business decisions and drive.
| It’s teasing | Security | – Last | Answer | change % |
|---|---|---|---|---|
| Tgt | Target Corp. | 88.53 | U +0.04 |
+ 0.05% |
| SBUX | Starbucks Corp. | 83.33 | -0.36 |
-0.43% |
The company has also expanded its partnership with Home and Lifestyle Brand Magnolia, founded by Chip and Joanna Gain, and Starbucks for a targeted holiday beverage. Starbucks is also looking to increase traffic under CEO Brian Niccol, who took over last year and launched a turnaround strategy.
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Target also said on Wednesday it is investing $5 billion in 2026, about 25% more than in 2025, to renovate its stores and invest in store offerings and investments to improve the shopping experience.
