Target follows Walmart as CCO reveals 500 ‘affordable’ new items will hit over 1k stores – but you must know the aisle

IN a recent earnings call, Target's Chief Operating Officer, Rick Gomez, emphasized the company's commitment to "affordability" as a core priority moving forward.

Gomez, who recently stepped into the role, highlighted the importance of affordability, alongside other key areas like newness, seasonal relevance, and ease, in driving Target's strategy.

"Knowing affordability is top of mind for consumers, in many markets this year, we're offering 20 of the most popular school supply items that together are priced under $20," Gomez said during the earnings call.

"Among the drivers of our comp sales, we're pleased that our second quarter growth was driven entirely by traffic, reflecting the combined benefits of the multiple guest-focused initiatives we outlined in our Financial Community Meeting back in March," he added.

Gomez underscored that while American families are navigating economic pressures, there is still a willingness to spend when they find value.

He noted that Target's second-quarter performance, which saw a 2% growth in comparable sales driven entirely by traffic, reflects the importance of affordability in attracting and retaining customers.

"While the economic data remains mixed, we see a consumer that is still willing and able to spend," Gomez explained.

"Yes, they're still being choiceful. Yes, they're budget conscious. And yes, they're hunting for deals and everyday value.

"But they're also willing to shop when they find that right combination of fashion and newness at the right price."

Looking ahead, Gomez reaffirmed Target's dedication to understanding and meeting the evolving needs of consumers by continuing to prioritize affordability.

"Affordability, newness, seasonal relevance, and ease. These are mission critical," he added.

Target's focus on affordability is evident in its recent initiatives, such as the introduction of a new monthly subscription option for Target Circle 360.

This also includes expansion of affordable product offerings across various categories, including apparel, home goods, and beauty.

As the company gears up for fall, Gomez assured that Target will continue to offer competitively priced products to meet the needs of budget-conscious shoppers.

"We have big plans in store, including exclusive items to Target and we'll have more exciting details to share very soon," he added.

What is Target Circle 360?

In April, Target launched its first-ever paid membership program, Target Circle 360.

For $99 a year, members get access to the following perks:

• Unlimited, free same-day delivery on orders over $35
• An extra 30 days to return your items
• Free two-day shipping on 100,000s of items
• 5% off in-store and online
• Automatic deals and exclusive partner perks

ON LOCKDOWN

Despite Target's pursuit of more affordable prices, some people are still craving cheaper items.

Target intensified its efforts to combat theft across its stores this summer.

The company warned that if theft continued at its current pace, it could slash over $500 million from its profits compared to the previous year, according to CNBC.

In response, retailers have introduced various anti-theft strategies, such as locked shelves, receipt checks, and posting warning signs to discourage theft.

Additional measures include the installation of receipt scanners, carts equipped with locking technology, and an increase in security cameras.

In a related move, another chain has singled out a city in Illinois, planning to shut down three of its locations there.

Plus, a furniture chain is closing all 380 of its stores after its parent company filed for bankruptcy.