Target is taking a nod from other retail competitors and will be permanently lowering prices on thousands of items.A few weeks after Amazon drastically lowered Whole Foods' prices, it looks as if Target is trying to one-up the competition by lowering prices on thousands of items storewide. This price cut means that customers may be seeing fewer "Weekly Wow!" offers or the "Bonus Offer" throughout the stores and online. The retail company wants to make items cheaper on a permanent basis, while also doing fewer sales promotions. Mark Tritton, Target's executive vice president and chief merchandising officer, said in a press release:
We want our guests to feel a sense of satisfaction every time they shop at Target. Part of that is removing the guesswork to ensure they feel confident they're getting a great, low price every day. We've spent months looking at our entire assortment, with a focus on offering the right price every day ..."
According to Fortune, the decrease in prices is causing Target's stock to drop by three percent, causing concern. Sears' shares fell more than three percent, while Wal-Mart, Dollar General, and Costco all dropped more than one percent after Target's announcement. But, that drop of three percent is not the only reason investors are worried. Apparently Target is looking to spend about $7 billion in the next three years on remodeling hundreds of stores nationwide -- 100 stores this year, 250 in 2018, and 600 by 2019. This move will hopefully improve the brand's e-commerce and stores. Target CEO Brian Cornell said that many of the buildings "don't reflect the brand" and that they "haven't been updated in years." What are your thoughts on the lower prices at Target? Do you think it's wise of the retail company to spend $7 billion on remodels? Will those remodels help build back the Target brand? Share your thoughts with us in the comments below.