Dive Brief:
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Michaels is cutting prices on more than 3,000 items, the arts and crafts retailer said Wednesday.
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The move comes about a year after Michaels slashed prices on more than 5,000 items and a few months after the retailer lowered the price of in-store parties and some party goods.
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Target has also been on a price-cutting jaunt. Earlier this month the mass retailer said it would cut prices on 3,000 items favored by busy families, after lowering prices on 3,000 groceries and other goods in November.
Dive Insight:
With price top of mind for consumers, pricing is a balancing act for retailers.
Value is a priority even for wealthier households, which have increasingly drifted toward discounters like dollar stores and Walmart. Executives at all three major off-price retail chains have discussed how vigilantly they track prices at mainstream retailers, in order to stay competitive while protecting margins.
Consumers’ focus on value, already sharp, is set to only intensify as gas prices surge amid the Iran war. In fact there were signs of weakening consumer spending earlier in the year, even before the war began, according to research this week from Wells Fargo economists.
This complicates Michaels CEO David Boone’s goal of picking up the market share up for grabs since the collapse of Party City and Joann. The reductions announced this week “reflect our ongoing commitment to delivering value to our customers every time they shop with us," Boone said in a statement.
"Our mission is for Michaels to be the go-to destination for creating and celebrating in every community, and that means making it easier and more affordable for everyone to create, celebrate, and bring their ideas to life,” he said.
