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The future of the Supplemental Nutrition Assistance Program (SNAP) program uncertain following several policy changes that disrupted funding and eligibility for millions of Americans. As a result, many households that once depended on these benefits are now facing an increased risk of food insecurity. In 2024, SNAP supported around 41.7 million people each month, or about 12% of the total U.S. population, with 62% of participants being families with children, according to the Center on Budget and Policy Priorities (CBPP). With inflation continuing to drive up prices on everyday essentials, millions of families are struggling more than ever to afford their daily needs. The broader economy has also remained volatile in recent months. New tariffs have increased the cost of essential goods, prompting consumers to cut back and further stretch their budgets. While major retailers such as Walmart (WMT) and Aldi have pledged to keep prices low, rising operational costs and the ongoing government shutdown have made it increasingly difficult to deliver on those promises without taking on costs. Prices for food at home climbed 2.6%, and food away from home rose 3.7% in the 12 months ending September 2025, according to the latest U.S. Bureau of Labor Statistics data. Target cuts prices on thousands of items Despite economic uncertainty, consumers plan to spend an average of $890.49 per person this holiday season on gifts and other seasonal items, the second-highest amount on record, according to the National Retail Federation (NRF). “Time and again, Americans prioritize spending on loved ones for holidays despite economic uncertainty,” said NRF VP of Industry and Consumer Insights Katherine Cullen. “With more consumers planning to seek out sale events this year, retailers are prepared to deliver on deals and value to ensure consumers have everything they need to make the holiday special.” To help ease financial strain, Target (TGT) is lowering the prices on more than 3,000 food, beverage, and essential items during the holiday season. The retailer is also offering a complete Thanksgiving meal for under $5 per person. “I’m proud of the way our team moved quickly to lower prices on thousands of items our guests need most,” said Target VP and Chief Merchandise Officer of Food, Essentials and Beauty Lisa Roath in a press release. “It’s important work that will make a difference for families managing tight household budgets during the holidays. And it’s work that builds on Target’s legacy of strengthening communities through the way we run our business.” In addition to the price cuts, Target is donating $500,000 to Feeding America, the nation’s largest hunger-relief organization, as food banks nationwide prepare for increased demand this holiday season. This latest donation brings Target’s 2025 food security contributions to over $2.5 million in grants and 150 million pounds of food, part of the $400 million in products and cash the retailer plans to provide to nonprofits this year. Other retailers that have cut prices in 2025 Walmart: Offers a Thanksgiving meal bundle for under $4 per person and offered 7,400 temporary price reductions in the second quarter of fiscal 2025. Sources: Walmart, Bloomberg Aldi: Implemented daily price drops, including over 400 items with reduced prices this summer. Source: Fox Business Stop & Shop: Lowered prices on thousands of items across all Eastern Massachusetts stores. Source: GlobeNewswire Giant Eagle: Reduced prices on more than 300 of its most frequently purchased items through the end of 2025. Source: Supermarket News Target faces declining sales and traffic These price-cutting efforts come amid ongoing challenges for Target, as it has struggled over the last few years with declining sales and traffic. In the second quarter of fiscal 2025, Target reported a nearly 1% decline in net sales year over year, with comparable sales down almost 2%. Store traffic has also slowed. Data by Placer.ai shows a 5.3% decrease in foot traffic during Target Circle Week compared to last year. Without a sustainable turnaround, Target risks losing the loyal customers that have long driven its growth. More Retail News: Target announces a major change affecting its entire business Macy’s announces unexpected closure ahead of holiday season Target’s adding a massive amount of new merchandise for holiday season Still, there are signs of resilience in the retail sector. The NRF predicts retail sales in November and December will grow between 3.7% and 4.2% compared to last year, reaching up to $1.02 trillion in total spending. “The economy has continued to show surprising resilience in a year marked by trade uncertainty and persistent inflation. As tariffs have induced an uptick in consumer prices, retailers have tried to hold the line on prices given the uncertainty about trade policies,” said NRF Chief Economist and Executive Director of Research Mark Mathews. “Retailers often find themselves battling the stigma of being overpriced, which can deter consumers from engaging with their brand,” said HairClub CMO Michael E. Donner in a LinkedIn post. “However, recent trends indicate a shift in strategy, with retailers strategically cutting prices to not only attract customers but also to reshape perceptions of their brand’s affordability.”
