Target (TGT) has recently faced some major headwinds to its business that have negatively affected its sales, and it is hoping that its Black Friday deals will provide a much-needed lifeline.
Target revealed that its sales were lower than expected during the third quarter of this year. The retailer’s comparable sales only increased by a small 0.3% compared to the same time period last year.
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Also, customers' spending per purchase decreased by 2% year over year, even after the retailer cut prices on thousands of items this year.
Related: Target flags startling customer behavior ahead of holidays
Target claims that its low sales are due to consumers pulling back on their spending due to macroeconomic concerns. As a result, it is predicting that its comparable sales during the holiday season could remain “flat.”
“Consumers tell us their budgets remain stretched, and they're shopping carefully as they work to overcome the cumulative impact of multiple years of price inflation,” said Target CEO Brian Cornell during an earnings call on Nov. 20.
Target’s struggles with its recent sales also come after it faced a massive boycott from consumers over its Pride collection last summer, which faced criticism for marketing LGBTQ merchandise such as transgender swimsuits to children.
Target announces steep Black Friday discounts
As the company embarks on a shaky road to recovery, it has opted to roll out generous Black Friday deals to lure customers back into its stores.
Black Friday lands on Nov. 29 this year, and Target kicked off its Black Friday deals eight days earlier. The retailer is offering Black Friday discounts (online and in stores) of up to 50% off on thousands of items such as “tech, apparel, video games, board games, small appliances,” and more, according to a recent press release.
Some examples of these deals include $75 off PlayStation 5 Consoles and 40% off sweatshirts, sweatpants, fleece, and denim.
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In addition, Target is offering “three-day-only deals” between Nov. 28 and Nov. 30, with twice as many deals as last year. These deals include 40% off matching sleepwear, 50% off beauty gift sets, etc.
"Black Friday is all about great deals, so Target is offering some of our best prices of the season to help everyone save money as they share the magic of the holidays with their loved ones," said Rick Gomez, executive vice president of Target, in the press release.
On Black Friday, Target will open at 6 a.m. and kick off extended holiday shopping hours on Nov. 30. This means that Target stores will be open from 7 a.m. to midnight until Dec. 23.
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