Target (TGT) has had a rough year, and it is scrambling to pick up the pieces after it recently noticed a disappointing change in customer behavior.
In its first-quarter earnings report for 2025, Target revealed that while its comparable digital sales increased by 4.7% year-over-year, its comparable store sales dipped by 3.8% during the quarter.
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The recent decrease in comparable store sales comes after Target faced boycott calls from consumers earlier this year, in response to it scaling back its diversity, equity, and inclusion initiatives. It also comes during a time when many consumers are battling inflation and a higher cost of living.
Related: Target struggles to reverse alarming customer trend amid boycotts
Amid recent challenges, Target’s foot traffic tumbled. According to recent data from Placer.ai, the number of customers visiting Target stores per location declined by 4.8% year-over-year during the quarter.
During an earnings call last month, Target CEO Brian Cornell said the company is “not satisfied” with its recent performance and highlighted that it is operating in an “exceptionally challenging environment.”
“For several years now, we’ve seen pressure in our discretionary businesses, as spending adjusted down from elevated levels during the pandemic and then moved further away in the face of historically high inflation in needs-based categories,” said Cornell.
“On top of those ongoing challenges, we faced several additional headwinds this quarter, including five consecutive months of declining consumer confidence, uncertainty regarding the impact of potential tariffs, and the reaction to the updates we shared on Belonging in January.”
Target makes bold move to reverse alarming customer behavior
As Target struggles to boost its sales, it has made a major move to win back customers during a bustling time of the year.
The retail giant has announced that it will make back-to-school shopping “more affordable” for consumers by “maintaining last year’s prices on must-have supplies” as inflation and tariffs raise prices across the country, according to a new press release.
In addition to dodging price increases, over 1,000 back-to-school items at Target will be under $5. The retailer is also offering shoppers 20 essential school supplies, such as “crayons, colored pencils, notebooks, folders,” etc., that add up to less than $20. First-day-of-school outfits will even start at $5, with teacher essentials starting at $3.50.
Related: Target CEO admits a major mistake amid boycotts from customers
Target also said that most essentials for college students, such as storage, bedding and apparel, will be priced under $40.
“This is such an important time for everyone preparing to head back to class — or heading off to school for the first time,” said Target Chief Commercial Officer Rick Gomez in the press release. “The Target team will be there for families by holding last year’s prices on key school supplies and standing tall for unrivaled style, quality, and exceptional value.”
Target launches generous offers for students and teachers
Target is also giving Target Circle members early access to back-to-school discounts and is launching new deals for students and teachers.
Target Circle members will be able to access “major deals on back-to-school and college essentials” between July 6 and July 12.
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Starting June 29, college students can even receive a 20% off storewide discount with Target Circle. Teachers can also receive 20% off storewide, but between July 20 and Aug. 30.
Teachers and students can also get 50% off a one-year Target Circle 360 membership through Sept. 13.
The move from Target comes when many consumers are making drastic changes to their shopping habits due to concerns about tariffs and the state of the economy.
According to a new survey from market research company Numerator, 88% of consumers are concerned about the impact of tariffs, while 64% are worried that tariffs will raise prices on everyday goods.
Also, 81% of consumers are adjusting their finances or shopping habits in response to tariffs, which includes delaying nonessential or expensive purchases, buying fewer imported goods, looking for sales and coupons, and switching to lower-priced retailers and discount stores.
Related: Target faces another massive boycott from customers
