Target to slash prices on thousands of items, sending shares tumbling | CNBC

The cuts will be on items including cereal, paper towels, baby formula, razors and bath tissue, Target said. And the news comes just days after Amazon started cutting prices at Whole Foods’ stores across America.

Target shares were trading around 3 percent lower Friday afternoon on the announcement.

“We want our guests to feel a sense of satisfaction every time they shop at Target,” Mark Tritton, Target’s chief merchandising officer, said in a statement.

“Part of that is removing the guesswork to ensure they feel confident they’re getting a great, low price every day,” Tritton added.

“We’ve spent months looking at our entire assortment, with a focus on offering the right price every day and simplifying our marketing … all while maintaining sales we know are meaningful to guests.”

Target said it hasn’t ditched promotions entirely, but instead will focus on only the most “compelling” sales. The big-box retailer has now eliminated more than two-thirds of its price and offer “call-outs” in stores, so big savings will be easier for shoppers to spot.

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Target to slash prices on thousands of items, sending shares tumbling.