Target is releasing its cheapest Thanksgiving meal deal yet

new York
CNN
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Target is slashing the price of its Thanksgiving meal kit, adding to its roughly 8,000 discounted products to attract inflation-weary shoppers during the holiday.

Thanksgiving meal is $20, a $5 decrease from 2023. It feeds four people and includes all the usual holiday sides: a frozen turkey (up to 10 pounds), potatoes, canned green beans, cream of mushroom soup, boxed stuffing mix, and more jarred gravy. The deal is a mix of well-known brands and Target's own label Good & Gather.

“One of the themes we hear again and again is the need for affordability, so we're committed to prioritizing this issue and ensuring we offer affordable options,” Rick Gomez, Target's chief commercial officer, told CNN exclusively .

Target is the latest major retailer to slash the price of its Thanksgiving meal kit, joining Aldi and Walmart in a holiday price war. Last week, Sam's Club announced a Member's Mark Thanksgiving meal that feeds up to 10 people for less than $100, features Warehouse Club's own-brand products and comes pre-cooked.

Consumer Price Index data shows that food price inflation eased significantly last year. According to the Bureau of Labor Statistics, food prices rose 1.3% annually in September, well below overall inflation.

“As inflation cools in certain areas, retailers are offering more deals to lure consumers to the door in the hopes that shoppers will add an extra item or two to the cart,” says Dr. Michael Swanson, chief agricultural economist at Wells Fargo's Agri-Food Institute, told CNN.

But the strong competition among retailers shows that after years of rising prices, customers are switching from branded goods to cheaper private labels.

The price of turkey, the most expensive item in Target's package, was reduced by 20% to 79 cents a pound, Gomez said, following a broader trend of food prices gradually falling since their pandemic peak. All sizes remain the same as last year.

Target was also ambitious this year, cutting prices, which helped boost its bottom line after a series of terrible earnings quarters.

But Gomez said customers have responded positively to the discounts remain “picky” in their spending.

Customers are “trying to stretch their budgets and are looking for other ways to do it,” he said, pointing to the growth of the private label business, which generates $30 billion in sales each year.

Gomez said Target customers buy in bulk to save money or buy smaller items that have cheaper prices compared to their full-size counterparts. Others are increasingly looking for sales.

Target has adopted a cautious outlook for the rest of the year and expects customers to continue negotiating. The company expects sales to rise up to 2% this year, but also warned it may not reach that level.

Despite the restrained spending, Gomez said customers are “continuing to prioritize the holiday moment,” but added, “They're looking for affordable options to do so.”

Target (TGT) will report its results on November 20th.