Why Target and McDonald’s are cutting prices and offering deals

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1. [Target]()’s [weak quarterly earnings](https://www.cnbc.com/2024/05/22/target-tgt-q1-2024-earnings.html) underscored why it cut prices on thousands of household staples: It’s struggling to win over bargain hunters.

   The discounter is not alone.

   [Target’s first-quarter results](https://www.cnbc.com/2024/05/22/target-tgt-q1-2024-earnings.html) on Wednesday not only show American consumers are more selective about spending in the face of sustained inflation that has squeezed their budgets for nearly three years. The company’s declining sales also illustrate how the battle for shoppers’ wallets has heated up as retailers — and even some restaurants — race to outmatch each other on low prices.

   [Walmart]() said last week that its grocery “rollbacks,” short-term deals on specific items, were up 45% year over year in April. The discounter also introduced a new premium grocery brand with [most items under $5](https://www.cnbc.com/2024/04/30/walmart-launches-new-grocery-brand-bettergoods.html).

   Elsewhere, Aldi dropped prices earlier this month on more than 250 items, including chicken, steak, granola bars and frozen blueberries. And even [McDonald’s]() is debuting a limited-time [$5 value meal](https://www.cnbc.com/2024/05/10/mcdonalds-working-on-5-value-meal.html) in late June as some diners scoff at the price of fast food.

   More: [https://www.cnbc.com/2024/05/22/target-walmart-mcdonalds-price-cuts-deals.html](https://www.cnbc.com/2024/05/22/target-walmart-mcdonalds-price-cuts-deals.html)