Target Corporation (NYSE: TGT) has announced Friday that it will cut prices of thousands of products in its stores. Shares of Target fell more than 2.5% after the announcement. The initiative is a competitive plan to help Target increase sales against its rivals Wal-Mart Stores Inc (NYSE: WMT) and Amazon.com, Inc. (NASDAQ: AMZN).
Shares of Wal-Mart and Amazon have also decline as a result. Amazon stock fell about 1.5% on Friday, and Wal-Mart was down about 1.2%.
In an official blog post on Target’s website, the executive vice president and chief merchandising officer said, “We want our guests to feel a sense of satisfaction every time they shop at Target … Part of that is removing the guesswork to ensure they feel confident they’re getting a great, low price every day. We’ve spent months looking at our entire assortment, with a focus on offering the right price every day and simplifying our marketing to make great, low prices easy to spot, all while maintaining sales we know are meaningful to guests. And guests are taking note, appreciating much easier, more clear - and more consistent savings - at Target.”
Target’s decision came only a week after has officially closed the deal with Whole Foods, and announced extensive price cuts across the grocery stores.