ByREUTERS

Target is slashing prices on 3,000 everyday items such as food, beverages, and household essentials during the holiday season, the retailer said on Tuesday, as it seeks to attract shoppers who are tightening budgets amid economic uncertainties.

Retailers are bracing for a muted holiday shopping season as US consumers rein in spending amid stubborn inflation, elevated interest rates, and President Donald Trump's import tariffs.

They are also preparing for a sales dip in November after food aid benefits lapsed due to the government shutdown.

Rivals Walmart and Aldi are also cutting costs

Minneapolis-based Target said its Thanksgiving meal will now cost less than $5 per person, following similar moves by rivals Walmart and Aldi.

Target's meal kit for four will cost under $20, compared with $20 a year ago.

US PRESIDENT Donald Trump delivers remarks on tariffs at the White House last week. Because Trump is so hard to characterize neatly, we should think twice before jumping to conclusions as to where his tariff policies are headed, says the writer.
US PRESIDENT Donald Trump delivers remarks on tariffs at the White House last week. Because Trump is so hard to characterize neatly, we should think twice before jumping to conclusions as to where his tariff policies are headed, says the writer. (credit: Carlos Barria/Reuters)

In October, the company unveiled its first major layoff in about a decade, cutting 1,800 corporate roles.