(Bloomberg) -- Target Corp. ended a string of quarterly sales declines by focusing on cutting prices on essential goods, winning over inflation-hit consumers who are pulling back from other retailers. The Minneapolis-based company’s comparable sales, a key gauge of retail success, rose for the first time in more than a year in the second quarter.
Shoppers returned to Target stores thanks to deals such as $15 bras and $1 pool noodles, as well as price cuts on essentials like milk and bread. Results from Target and rival Walmart Inc. show American consumers are willing to spend — but they’re hunting for bargains and prioritizing lower-priced necessities.
Shoppers are still holding off on big-ticket items such as designer clothes and appliances at stores like Macy’s Inc. and Home Depot Inc., though, as they wait for interest rates to ebb.
“While the economic data remains mixed, we see a consumer that is still willing and able to spend,” Rick Gomez, chief commercial officer of Target, said on a call with analysts. “Yes, they’re hunting for deals and everyday value. But they’re also willing to shop when they find that right combination of fashion and newness at the right price.
” Target’s comparable sales rose 2% in the quarter, higher than the average estimate of analysts. Comparable sales for discretionary items were slightly negative during the quarter, but apparel and beauty products were among the categories that saw growth. Price cuts also drove sales of.