Target has announced significant price reductions on over 2,000 items as the holiday shopping season approaches. This marks the retailer’s second price cut of the year, aimed at attracting consumers feeling the pinch of inflation.

Currently, many products across various categories—including home goods, beauty products, food, beverages, and toys—are experiencing price drops. In a press release, Target stated, “We regularly adjust prices to remain competitive in markets nationwide,” adding that this latest price-cut initiative will continue through December. The discounts apply to well-known brands like Lego and Coffee Mate, as well as Target’s in-house products. Specific reductions highlighted by the company include the Magic Bullet blender, which has dropped from $49.99 to $39.99, and the Bluey toy fire truck, now priced at $19.99 from $24.99.

Target’s pricing strategy appears to be effective, particularly after a series of challenging financial quarters; the recent discounts have rejuvenated consumer spending. According to the latest financial report, these price cuts contributed to a 2% sales increase at stores open for over a year and a remarkable 36% surge in profits during the last quarter.

Earlier this year, in May, Target initially announced price cuts on 5,000 items, ultimately exceeding that goal with 8,000 items marked down. To date, the retailer has reduced prices on over 10,000 items this year.

Other major retailers, including Walmart, Ikea, and Aldi, have also lowered prices in recent months to draw in consumers. With inflation affecting spending habits, shoppers have become more selective with their purchases. Data released last week showed that U.S. retail spending increased by 0.4% in September, rising from a mere 0.1% in August. Consumer spending constitutes about 70% of the U.S. economy, with retail sales making up a substantial portion. Despite ongoing challenges from high inflation and interest rates, Americans continue to spend actively.

However, Target remains cautiously optimistic about its future performance, projecting an annual sales growth of up to 2%, though there’s a possibility it could fall short of expectations.