Target is lowering the price of its Thanksgiving meal bundle to $20, down $5 from last year, as part of its holiday season strategy to appeal to budget-conscious shoppers. The meal serves four people and includes Thanksgiving staples such as a frozen turkey (up to 10 pounds), potatoes, canned green beans, cream of mushroom soup, boxed stuffing, and jarred gravy.
The offering combines both popular brand names and Target’s own Good & Gather label. “Affordability is something we hear from our customers consistently, and we are committed to prioritizing that,” Rick Gomez, Target’s chief commercial officer, told CNN.
Target joins competitors in Thanksgiving price wars
With this move, Target joins other major retailers like Aldi and Walmart in lowering Thanksgiving bundle prices to attract shoppers. Last week, Sam’s Club introduced a Member’s Mark Thanksgiving meal for under $100, feeding up to 10 people with a pre-cooked selection of its private-label items.
While food inflation has slowed considerably over the past year, with grocery prices rising only 1.3% annually as of September, retailers are focusing on deals to attract customers who are increasingly seeking value. “As inflation eases in some areas, retailers hope to draw customers in with deals, expecting a few extra items might end up in their carts,” explained Dr. Michael Swanson, chief agricultural economist at Wells Fargo’s Agri-Food Institute.
Increased competition as shoppers turn to private labels
The price cut follows a broader trend where consumers are increasingly opting for more affordable private-label products over brand names. Aldi, for example, recently announced its lowest-priced Thanksgiving meal bundle in five years, aiming to offer a more affordable option than Walmart for cost-conscious shoppers. Target has also reduced the cost of its turkey to 79 cents per pound, a 20% cut from last year, mirroring the overall decline in food prices from their pandemic highs.
Discounts drive sales despite cautious customer spending
Target has seen positive responses to its discounts this year, helping to lift earnings after several challenging quarters. “Customers are looking for ways to stretch their budget, and our private label sales, generating $30 billion annually, reflect that trend,” said Gomez.
Shoppers are now buying more bulk items to save money or selecting smaller, less expensive products. Despite its cautious sales outlook for the year, Target expects up to a 2% increase in sales, though reaching that target may prove challenging.
Gomez noted, however, that even as shoppers are careful with their spending, they still “prioritize the holiday season,” searching for affordable ways to celebrate. All eyes will be on Target as it releases its next earnings report on November 20, shedding more light on how the retailer’s aggressive price cuts and value-focused strategies have impacted its holiday sales season.