Target pushes aggressive price cuts


Target wants to be sure it gets your holiday business this year. The retail giant has seen its profits take a nosedive this year, as shoppers cut back to just the essentials. Nearly half the store's revenue comes from nonessentials, though, like fashion and trendy housewares. To be sure they move items like this over the next month, Target will be offering some serious bargains.

The company says that it will match prices with its chief rival, Wal-Mart, in local markets, and will offer daily rotating value items on its website, while aggressively cutting prices on popular national brands. Though Target has cut prices around the holidays in previous years, Chief Executive Gregg Steinhafel says the company is really ramping up its promotions for 2008, and expects to be the price leader on many gift items.

This makes Target very attractive for holiday shoppers this year. I remember doing most of my shopping there last year anyway, and I saved myself 10% extra by opening the Target credit card on the day I spent $500 on gifts for my family. Then I paid it off and closed the account. If you can exercise discipline, there's no reason not to go for the in-store credit card offers, especially if you can take 10 or more percent off a large purchase. With the Target credit card profits dropping sharply recently, I wouldn't be surprised to see the store offer even better incentives to qualified applicants. Don't forget to check the website for those rotating value items, too.