Target plans to cut prices on thousands of consumer basics this summer, from diapers to milk, as inflation cuts into household budgets and more Americans pay closer attention to their spending.
The price cuts, already applied to 1,500 items, will eventually include 5,000 food, drink and essential household goods. Target and other retailers are increasingly catering to customers who are struggling with higher prices for groceries, though inflation has begun to cool. Many of them have switched to private label brands sold by Target and others big retailers, which are typically less expensive than well-known brands.
Target launched one such collection in January called Dealworthy which includes nearly 400 basic items, ranging from clothing to electronics, that can cost less than $1, with most items under $10.
Last week, McDonald’s said that it was planning to introduce a $5 meal deal in the U.S. next month to counter slowing sales and customer frustration with higher prices. Walmart posted strong quarterly sales last week driven by a influx of customers, including households with incomes of more than $100,000, looking for bargains.
So are they really cutting prices, or are they hiking them until it hurts and then introduce a “new brand” of the same stuff in a different box, just with less markup?
Probably this.
Raise the price on everything, rake in profits till they can’t squeeze any more blood out of the stone, then launch their in house brands as loss leaders to gain market share before slowly raises prices to be where name brand was…
A tale as old as unchecked rampant capitalism with zero regulation