CBS News
Target to cut prices on 5,000 products in bid to lure cash-strapped customers
Target said Monday it plans to slash the price of bread, coffee, diapers and thousands of other everyday items this summer, joining other retailers looking to kickstart business by catering to inflation-weary consumers.
Target is cutting its prices because “consumers are feeling pressured to make the most of their budget,” Executive Vice President Rick Gomez said in a statement. Other staples being repriced include fruit, milk, meat, peanut butter, pet food, vegetables and paper towels, the Minnesota retailer said.
Target said it has already lowered the price on roughly 1,500 items, and the remaining cuts will take effect in coming weeks. The lowered prices will also be available through Target’s website and shopping app.
Target, which is scheduled to release its first-quarter earnings on Wednesday, in March reported a 1.7% drop in sales for 2023 — its first annual decline in seven years.
The move comes as the U.S. economy is slowing, even as inflation continues to ease.
“While there are some encouraging signs in the economy, there are also stubborn pressures impacting families and retails,” Christina Hennington, Target’s chief growth officer, said in an earnings call with analysts in March. “Consumers say they still feel stretched, they’re balancing a lot and having to make trade-offs to meet the needs of their families while sprinkling in the occasional luxury.”
The pullback in spending by budget-conscious consumers is also affecting other industries, including fast-food giant McDonald’s and casual-dining chains such as IHOP and Applebee’s.
In April, grocery chain Giant Food, which has 164 locations across Delaware, Maryland, Virginia and Washington, D.C., cut the price on hundreds of its private-label items. Arts supply retailer Michaels also lowered prices in April, slashing the cost of paint, markers, pens and other products.
Watch CBS News
Be the first to know
Get browser notifications for breaking news, live events, and exclusive reporting.
Watch CBS News
Be the first to know
Get browser notifications for breaking news, live events, and exclusive reporting.
A food company known for popular grocery store condiments has recalled a package of tortilla strips that may be contaminated with wheat, the U.S. Food and Drug Administration said Friday. The product is meant to be gluten-free.
Sugar Foods, a manufacturing and distribution corporation focused mainly on various toppings, artificial sweeteners and snacks, issued the recall for the “Santa Fe Style” version of tortilla strips sold by the brand Fresh Gourmet.
“People who have a wheat allergy or severe sensitivity to wheat run the risk of serious or life-threatening allergic reaction if they consume the product,” said Sugar Foods in an announcement posted by the FDA.
Packages of these tortilla strips with an expiration date as late as June 20, 2025, could contain undeclared wheat, meaning the allergen is not listed as an ingredient on the label. The Fresh Gourmet product is marketed as gluten-free.
Sugar Foods said a customer informed the company on Nov. 19 that packages of the tortilla strips actually contained crispy onions, another Fresh Gourmet product normally sold in a similar container. The brand’s crispy onion product does contain wheat, and that allergen is noted on the label.
U.S. Food and Drug Administration
No illnesses tied to the packaging mistake have been reported, according to the announcement from Sugar Foods. However, the company is still recalling the tortilla strips as a precaution. The contamination issue may have affected products distributed between Sept. 30 and Nov. 11 in 22 states: Arizona, California, Colorado, Florida, Georgia, Iowa, Idaho, Illinois, Indiana, Maryland, Maine, Michigan, Minnesota, North Carolina, New Jersey, Ohio, Oregon, Pennsylvania, Texas, Utah, Virginia and Washington.
Sugar Foods has advised anyone with questions about the recall to contact the company’s consumer care department by email or phone.
CBS News reached out to Sugar Foods for more information but did not receive an immediate reply.
This is the latest in a series of food product recalls affected because of contamination issues, although the others involved harmful bacteria. Some recent, high-profile incidents include an E. coli outbreak from organic carrots that killed at least one person in California, and a listeria outbreak that left an infant dead in California and nine people hospitalized across four different states, according to the Center for Disease Control and Prevention. The E. coli outbreak is linked to multiple different food brands while the listeria outbreak stemmed from a line of ready-to-eat meat and poultry products sold by Yu-Shang Foods.