Dive Brief:

• Target is offering additional discounts as part of its back-to-school shopping promotion, the retailer announced Wednesday. 
• The retailer has increased its discount for Target Circle to 20% off a one-time purchase for college students from July 3 through Sept. 3. The company is also expanding its Teacher Prep Event to take place from July 17 through Sept. 10, an extension from two weeks to eight weeks. 
• Additionally, Target stores in states with sales-tax holiday events will not charge sales tax. The retailer also recently announced its Target Deal Days event, from July 11 through July 13, which will feature savings across product categories.

Dive Insight:

Target is increasing savings for students and teachers this season.  

The company’s Teacher Prep Event, which allows educators to have a 15% off discount on school supplies and other products, was extended by nearly six weeks this year. It is available through the retailer’s Target Circle loyalty program and may be used by all teachers including homeschool teachers, those working at daycare centers and early childhood learning centers, university or college professors, and vocational or trade personnel with valid identification. 

As part of this year’s promotion, Target is showcasing its private labels, including Up & Up, Art Class and Mondo Llama, as well as items from more than 100 Black-owned brands, and adaptive and sensory-friendly products from Pillowfort and Cat & Jack. 

“We know the back-to-school season signals an important milestone for millions of families across the country — and we’re here to help by introducing even more ways for guests to save and find everything they need all in one convenient location,” Jill Sando, executive vice president and chief merchandising officer at Target, said in a statement. “From supplies and stylish apparel to snacks and the latest electronics, guests can count on Target to make the most of their budgets, with thousands of items under $10.”

The promotion comes as the retailer is trying to unload excess inventory and canceling orders to balance stock levels. The retailer expects its Q2 operating margin rate to be 2% instead of its previous guidance of 5.3% as it makes “revisions to sales forecasts, promotional plans and cost expectations by category,” according to a pervious company statement. 

Meanwhile, a June Mastercard Spending Pulse report predicts that sales during the back-to-school shopping season between mid-July and Labor Day will grow by 7.5% compared to 2021 and 18.3% compared to 2019. The report expects in-store shopping to grow 8.2% compared to last year.

“Back-to-school is the second biggest season for retailers and is often looked at as an early indicator of retail momentum ahead of the traditional holiday season,” Steve Sadove, senior adviser for Mastercard and former CEO and Chairman of Saks Incorporated, said in a statement.

While growth is anticipated, retailers “will need to find innovative ways to entice shoppers as discretionary spending potentially stretches thin as a result of increasing prices,” Sadove said.