Walmart and Target Lower Prices to Attract Shoppers

In a bid to attract consumers and boost sales, major retailers like Target and Walmart have implemented significant price reductions on a wide range of products. During a recent earnings call, Target CEO Brian Cornell revealed that the company had lowered prices on approximately 5,000 frequently purchased items over the summer, resulting in an "acceleration" in both unit and dollar sales during the second quarter, which ended June 30. Cornell expressed satisfaction with consumer responses to these price investments, particularly in food and beverage categories, indicating a strong focus on value among shoppers. Walmart has also joined the trend, announcing over 7,200 price rollbacks across various categories, with a notable 35% increase in food-related rollbacks. These temporary price cuts aim to alleviate financial pressure on households grappling with rising costs. Walmart's U.S. segment reported net sales of $115.3 billion for the quarter, and CEO Doug McMillon suggested that the company would continue to implement price reductions to support customers in saving money. Overall, core retail sales in the first seven months of the year have risen by 3.4% compared to the previous year, aligning with the National Retail Federation's forecast for a modest growth of 2.5% to 3.5% in retail sales for 2024. Despite a cooling labor force, consumer spending remains robust, serving as a crucial driver of economic expansion.