Target Makes New Efforts to Appeal to Cost-Conscious Shoppers

Target announced on Tuesday several plans to improve its customer shopping experience and take “direct aim at deep value-seeking Walmart shoppers,” Yahoo Finance reported.

Part of these plans is to launch or expand more than 10 private label Target brands, the company announced at Analyst Day in New York City. Women’s brand A New Day, young adult’s brand Wild Fable and children’s brand Cat & Jack are a few of Target’s lines that offer affordable and trendy clothing pieces compared to name-brand companies.

The company also announced that shoppers can expect more discounts in the future by adding more items starting at $3, $10 and $15 as well as introducing more promotions and improvements to its loyalty program, Target Circle.

Target CFO, Michael Fiddelke, told Yahoo Finance, the company focused on value messaging while noticing consumers are still “cautious” after inflation still remained elevated at the end of last year.

According to Yahoo Finance, “To assist in its investments in lower prices for shoppers and somewhat protect margins in the process, Target uncorked 2023 capital expenditure guidance of $4 billion to $5 billion. In 2022, Target spent $5.5 billion in capex.”