Dive Brief:
- Continuing its emphasis on low prices, Target is adding more than 1,000 low-cost summer items to its product assortment, the retailer announced Thursday. The products, including swimwear, outdoor items, snacks, drinks and skin care products, will be priced as low as $1 and more than half will be priced below $15.
- The retailer debuted a virtual Swim & Sand Shop on its website and mobile app, where shoppers can see how fashion influencers model its swimwear. Target is also hosting in-store pop-ups so that customers can sample its summer food and beverages, and stores will play beach-inspired playlists.
- On June 1, hundreds of Target stores will host events featuring giveaway beach bags, beauty carts with samples, personalized towel embroidery and more, per the press release.
Dive Insight:
Target is doubling down on its pricing strategy to attract deal-seeking consumers. The low-cost summer product assortment comes as the retailer said earlier this week that it is reducing prices across more than 5,000 food, household and essentials items. Target said it already marked down more than a thousand items.
“For millions of consumers, Target is a go-to for summer fun,” Jill Sando, Target’s executive vice president and chief merchandising officer of apparel and accessories, home and hardlines, said in a statement. “Our summer assortment is about bringing together everything people love about summer at Target and making it even easier to shop, even more joyful and even more affordable.”
In addition to offering discounts on other merchandise, Target released a new affordable private-label brand, Dealworthy, for price-conscious shoppers in February. The brand offers various essential items, such as body wash, paper towels and cotton balls.
Target is trying to attract budget-conscious consumers as its sales begin to slip. On Wednesday, the retailer reported Q1 sales declined by 3.2% year over year to $24.1 billion. Its net earnings for the quarter dipped by 0.8% to $942 million.
