Target Shoppers Are Waiting to Buy, Questing for Deals, and Stocking Up | Global News Avenue

Target shoppers go all-in on deals.

Customers are taking a calculated approach to shopping, Target (TGT) said and noted in the report Latest financial results Its customers say their budgets are still constrained after years of price increases. Target executives said people are comparing offers from different retailers, tracking sales and stocking up on essentials when they’re on sale.

Target CEO Brian Cornell said on Wednesday’s earnings call that Americans’ response to the sales was something the retailer hadn’t seen in “some time.”

“Their shopping behavior has become increasingly resourceful: waiting until the last moment of need to buy, focusing on deals, and then stocking up when they find deals,” Cornell said, according to AlphaSense records. “We’re seeing a response to sales. The response is stronger than ever.”

Minneapolis-based retailer Target said it has marked down prices on 5,000 items and plans to discount another 2,000 items ahead of the holiday season.

Executive Vice President Richard Gomez said Target saw sales decline in the weeks leading up to “Circle week,” when it offers discounts to members of the company’s loyalty program. People stocked up on essentials during other promotions, he said.

goal theory Transaction volume increased 2.4% in the third quarter compared with the same period in 2023, but purchase amounts tended to be smaller.

Target said all the bargain hunting helped people spend small amounts despite the difficult environment. Sales of more expensive discretionary items like televisions are down, but people are buying small luxuries like candles, picture frames and vases, Gomez said.

“They continue to make difficult trade-offs, trying to save on daily necessities in order to free up some budget for new must-have items,” he said.