Target to cut prices on 5,000 products in bid to lure cash-strapped customers

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Target said Monday it plans to slash the price of bread, coffee, diapers and thousands of other everyday items this summer, joining other retailers looking to kickstart business by catering to inflation-weary consumers.

Target is cutting its prices because "consumers are feeling pressured to make the most of their budget," Executive Vice President Rick Gomez said in a statement. Other staples being repriced include fruit, milk, meat, peanut butter, pet food, vegetables and paper towels, the Minnesota retailer said. 

Target said it has already lowered the price on roughly 1,500 items, and the remaining cuts will take effect in coming weeks. The lowered prices will also be available through Target's website and shopping app.

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The move comes as the U.S. economy is slowing. Although inflation continues to ease and overall consumer spending has remained solid this year, recent economic signals suggest Americans are becoming more frugal. The median rise in monthly household spending in April fell to 4.6%, the lowest reading in three years, according to data from the Federal Reserve Bank of New York. 

"While there are some encouraging signs in the economy, there are also stubborn pressures impacting families and retails," Christina Hennington, Target's chief growth officer, said in an earnings call with analysts in March. "Consumers say they still feel stretched, they're balancing a lot and having to make trade-offs to meet the needs of their families while sprinkling in the occasional luxury."

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