Target to cut prices on 3,000 items as inflation remains above Fed target
As the U.S. enters its fifth year of inflation running above the Federal Reserve’s 2% target, major retailers are responding to softer demand and increased competitive pressure.
With consumer sentiment in 2026 divided and the cost of living remaining a top concern among Americans, Target announced Wednesday that it will reduce prices on more than 3,000 items.
"Busy families are thinking about value as they begin to update their homes and wardrobes for spring," , Cara Sylvester, Target’s executive vice president and chief merchandising officer, said in a press release.
"We're delivering by lowering prices on 3,000 spring favorites across apparel, essentials and home," she continued. "We're committed to making it easier than ever for guests to have the fresh style and incredible value they love, with lower prices on the items we know they want."
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The discounted categories include women’s and children’s apparel, footwear such as flats, sandals and sneakers, bedding and blankets, baby products, household essentials and pantry staples.
Most reductions range from 5% to 20% off original prices and will begin rolling out in stores this month through the spring.
However, the price reduction program excludes stores in Alaska and Hawaii.
Inflation remained above the Federal Reserve’s 2% target in February as policymakers continue to weigh affordability concerns. The Bureau of Labor Statistics said Wednesday that the consumer price index (CPI) — a broad measure of the cost of goods and services, including gasoline, groceries and rent — rose 0.3% in February and increased 2.4% from a year earlier. The annual rate was unchanged from January, while the monthly gain was slightly higher than January’s 0.2% increase.
The price cuts appear to be part of a broader strategy aimed at restoring sales growth. Target CEO Michael Fiddelke outlined the company’s plan to return to growth during a financial community meeting last week, citing investments in key categories such as women’s apparel, home and baby.
"This new chapter of growth at Target is defined by clear choices and rooted in a deeper understanding of our unique lane in retail, the guests we serve and the areas where we're distinctly positioned to win," Fiddelke said.
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"This work is underway, and by putting style, design and value at the center of every decision," he continued, "we're making big changes to lead with a trend-forward assortment, elevate the guest experience, accelerate with technology and equip our teams to deliver the most delightful experience in retail, for today and over the long term."
FOX Business' Eric Revell contributed to this report.