Target is ramping up discounts. Here's why

target is one of the stores changing its price is based on your location depending on your exact location. Prices for the retail store can either be higher or lower. It all comes down to where you're standing, huffpost says Target and other retailers such as wal mart and Amazon practiced the price change, which as sketchy as it sounds. It's not illegal. In fact, it is known as dynamic pricing. Amazon, for example, changes its prices every 10 minutes. It can also adjust prices once it sees a consumer's behaviour. Target makes use of dynamic pricing based on whether app uses were shopping from in or outside a store. One explanation is that if someone is near a store, they've most likely reveal their commitment to shop. But if that person is further away and it's not committed, the apps algorithm is programmed to offer a better deal to save money. A target, Make sure you turn off your location on the target app, make use of their price matching policy user in app coupons and, when shopping online at a deal tracker that will automatically search for test and apply any coupons and cash back to your online order.

Target is stuck with too much home decor and too many TVs. To clear out the glut, it will ramp up discounts.The retail giant said Tuesday that it would mark down prices on some bigger-ticket items that consumers have pulled back on purchasing and cancel pending orders from suppliers.It's a sharp reversal from much of the past two years when discounts were scarce and supply constraints meant consumers often couldn't find what they wanted.Related video above: The Target app tracks you so it can change its prices based on your locationStores and brands were able to sell merchandise at full price to consumers who had built up savings while staying home during the pandemic. They were eager to spend big on their homes and wardrobes.But many shoppers in recent months have altered their purchasing choices in response to the fastest jump in inflation in decades and the end of federal government pandemic stimulus payments.Consumers are making fewer high-end purchases and buying more necessities like food, household staples and self-care items."There is a need to clear down inventory — even if that means discounting — to rebalance stock levels and make more room for these categories in high demand," Neil Saunders, an analyst at GlobalData Retail, said in a note to clients Tuesday.Target was caught off guard by the speed of these shifting trends and last month told investors it would begin marking down some overstocked items.On Tuesday, the company said it needed to respond more aggressively.The steps will dent the retailer's profit estimates for the year, the company said.Heading into Tuesday, Target's stock was down 31% for the year, and shares dropped 2% in early trading following the unexpected announcement.Other retailers, including Walmart, Gap and Urban Outfitters, have also said they are holding too much inventory of some product lines and also plan to mark down prices and step up sales to clear the glut."There is a surplus of inventory ... across the board at retail right now," Urban Outfitters' CEO Richard Hayne said last month.Urban Outfitters will increase promotions for the remainder of the year and into the winter holiday shopping season, he said.

Target is stuck with too much home decor and too many TVs. To clear out the glut, it will ramp up discounts.

The retail giant Tuesday that it would mark down prices on some bigger-ticket items that consumers have pulled back on purchasing and cancel pending orders from suppliers.

It's a sharp reversal from much of the past two years when discounts were scarce and supply constraints meant consumers often couldn't find what they wanted.

Related video above: The Target app tracks you so it can change its prices based on your location

Stores and brands were able to sell merchandise at full price to consumers who had built up savings while staying home during the pandemic. They were eager to spend big on their homes and wardrobes.

But many shoppers in recent months have altered their purchasing choices in response to the fastest jump in inflation in decades and the end of federal government pandemic stimulus payments.

Consumers are making fewer high-end purchases and buying more necessities like food, household staples and self-care items.

"There is a need to clear down inventory — even if that means discounting — to rebalance stock levels and make more room for these categories in high demand," Neil Saunders, an analyst at GlobalData Retail, said in a note to clients Tuesday.

Target was caught off guard by the speed of these shifting trends and last month told investors it would begin marking down some overstocked items.

On Tuesday, the company said it needed to respond more aggressively.

The steps will dent the retailer's profit estimates for the year, the company said.

Heading into Tuesday, Target's stock was down 31% for the year, and shares dropped 2% in early trading following the unexpected announcement.

Other retailers, including Walmart, Gap and Urban Outfitters, have also said they are holding too much inventory of some product lines and also plan to mark down prices and step up sales to clear the glut.

"There is a surplus of inventory ... across the board at retail right now," Urban Outfitters' CEO Richard Hayne said last month.

Urban Outfitters will increase promotions for the remainder of the year and into the winter holiday shopping season, he said.

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