Target is throwing in the towel on its previous losing strategy. Like many businesses, it tried to raise prices only to find its customers going elsewhere, largely to Walmart. Now Target is slashing its prices including on the towel it just threw in. The retail giant simply has no other choice given the sudden change in consumer behavior we’re seeing across the economic landscape. Eurodollar University&#x27;s Money &amp; Macro Analysis Target cuts prices on 3,000 items as stubborn inflation keeps US consumers on edge https://www.reuters.com/business/target-slashes-prices-more-than-3000-products-2026-03-11/ Fewer Americans Plan to Travel After Surging Fuel Costs Hit Budgets https://www.bloomberg.com/news/articles/2026-04-02/fuel-price-rise-on-iran-war-has-americans-putting-vacations-on-hold Numerator Consumers React to Rising Gas Prices https://www.numerator.com/resources/blog/consumers-react-rising-gas-prices/ FRBNY SURVEY OF CONSUMER EXPECTATIONS https://www.newyorkfed.org/microeconomics/sce#/ https://www.eurodollar.university Twitter: https://twitter.com/JeffSnider_EDU

Target Just Revealed a Sudden Shift in Consumer Spending

Eurodollar University

[SPEAKER_A] Target is throwing in the towel on its previous losing strategy because, like a lot of other businesses, it had been raising prices only to find its customers going elsewhere, largely to Walmart. Now the retail giant is slashing prices on thousands of items, including probably the towel that it just threw. They simply have no choice. Target has no choice here because of the sudden change in consumer behavior that we're seeing from all across the economic landscape. And behind all of this is the labor market. Its trend is the reason why consumers are altering their habits. The Bureau of Economic Analysis, for example, reported today more ugly data on both incomes and spending, which confirms the difficulties facing shoppers. And it shows exactly why Target is doing all this towel throwing and price slashing, and more importantly, why it's doing it now. Americans have been pulling back before, but now they're poised to really start digging in. According to recent surveys, many of them have already started by postponing or downgrading summer vacations while also canceling their dinner plans. So you can see where grocers, for example, have an opening here to at least offer cheaper food where possible. And this is exactly what consumers themselves have been warning about since early last year at the latest. Pessimism had been rising, which was proven by income and spending and the data that we got on both. And now the shifting business strategies of big companies like Target. But looking farther ahead into the oil shock and beyond, consumers have even more thoughts on what the economy is very likely to look like for the rest of this year. Let me tell you, it isn't inflation. It's more struggles with jobs and incomes.

Target Just Revealed a Sudden Shift in Consumer Spending

Read the full transcript

The candid version is on a podcast,
not the earnings call.

Target Just Revealed a Sudden Shift in Consumer Spending

Read the full transcript

The candid version is on a podcast, not the earnings call.

The candid version is on a podcast,
not the earnings call.