Target pledges price cuts as sales grow
For a while, shopping at Target was a pretty bleak experience. You’d walk the aisles looking for merchandise only to find half-empty shelves, disorganized inventory, and, worse yet, no one around to help.
But Target has been on a mission to improve the customer experience. And the company is seeing signs that its turnaround strategy is beginning to gain traction, with shoppers spending more this past fiscal quarter.
Target’s second-quarter net sales grew 5.3% from a year earlier, reaching $26.5 billion, while comparable sales rose 3.8%, the company reported.
Comparable traffic increased 3.6%, suggesting more shoppers are visiting Target as the retailer works to sharpen its merchandise, improve its stores and offer more value.
“Second quarter results build on the encouraging momentum we saw in the first quarter, giving us increasing confidence that our strategy is resonating with our guests and strengthening our leadership position in style, design, and value,” said Target CEO Michael Fiddelke.
Target plans more price cuts this year
Lower prices are a central part of Target’s effort to win back shoppers and make the retailer a more compelling destination for everyday purchases.
The company says it has already lowered prices significantly over the past year while continuing to invest in new products, store experiences and convenience.
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“We’ve already lowered prices on more than 10,000 items over the last 12 months and are planning for additional price reductions yet this year,” said Cara Sylvester, Target’s executive vice president and chief merchandising officer, during the company’s second quarter 2026 earnings call.
For Target, the strategy is about more than simply offering discounts.
The company is trying to establish a stronger combination of style, quality and affordability so shoppers have a reason to choose Target more often.
That approach is already showing up in some categories. Food and beverage, beauty, and Target’s Fun 101 categories were among the strongest performers in the quarter.
Target also said 95% of its back-to-school school-supplies assortment was priced at or below last year’s prices.
Target CFO Jim Lee said the company remains committed to finding ways to reduce tariff pressures, including working with vendors and changing sourcing, so it can continue investing in value.
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What’s next for Target?
Target saw foot traffic grow 4.7% year-over-year during its most recent quarter, according to data from Placer.ai. July was Target’s strongest month of 2026 so far, with visits up 7.3% year over year.
“Target’s rebound in 2026 continued into the second and early third quarters, driven by initiatives that feel synonymous with the brand, such as limited-edition collections and collaborations,” Elizabeth Lafontaine, Director of Research at Placer.ai, told TheStreet.
“Consumers are rewarding the chain for its recent innovations and improvements to efficiency, value and shopper experience compared to its softer performance in 2025. Visitation trends are gaining momentum, particularly during the critical back-to-school period.”
Looking forward, consumers should expect to see a mix of lower prices, new merchandise, and more positive changes to the shopping experience.
Target plans to introduce Target Beauty Studio in more than 600 stores beginning later this quarter, creating expanded beauty destinations with dedicated spaces and beauty advisors.
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The company also plans additional changes to its home assortment, including kids’ home, bedding and bath.
Back-to-school and back-to-college will also remain a focus in the near term.
Of course, there are still areas where Target expects progress to take time. In fact, the overall message from Target’s most recent earnings call was that the turnaround is still a work in progress.
But shoppers can expect the retailer to keep pushing on the same themes – lower prices, new merchandise, improved product availability, and a more convenient shopping experience.
Maurie Backman owns shares of Target.
Related: Popular discount retailer closing more stores
