Target is releasing its cheapest ever Thanksgiving meal – coming in at $5 per person.
The supermarket is undercutting rival Walmart with the deal, and coming close to matching the meal offered by budget retailer Aldi.
At $20 for four people, Target’s Thanksgiving meal is also $5 cheaper than it was last year.
It is the latest addition to a growing holiday price war between retailers, as cash-strapped Americans are increasingly searching for cheaper groceries.
Walmart’s deal comes in at $7 per person, while Aldi said its meal marks ‘the return of pre-inflation prices,’ providing a full meal for 10 people for less than $47 – or $4.70 each.
At $20 for four people, Target’s Thanksgiving meal is $5 cheaper than it was last year
Sam’s Club, Walmart’s membership-only retail store, also announced its Thanksgiving meal offering earlier this month, which feeds up to 10 people for under $100.
And unlike the deals offered by other supermarket brands, this meal can also be delivered pre-cooked.
Target’s meal, however, includes all the traditional Thanksgiving fixings, including a turkey, russet potatoes, green beans and stuffing mix.
It includes a mixture of items from Target’s Good & Gather label and name brands – such as Campbell’s cream of mushroom soup and Heinz home made style roasted turkey gravy.
‘One of the themes we consistently hear is the need for affordability, so we have made a commitment to prioritize that and to make sure we are delivering affordable options,’ Rick Gomez, Target’s chief commercial officer, told CNN.
Food price inflation has begun to cool in recent months. In September, grocery prices were rising at a 1.3 percent annual rate.
But in the last five years, food prices have risen by 20 percent, according to Labor Department data, which means that many American households are still feeling the pinch.
But there is some relief for shoppers, who can expect to pay 16 percent less for their Thanksgiving turkey this year. That is according to Wells Fargo, which released its annual report on the costs of holiday dinner favorites earlier this month.
Prices for turkey could fall even lower if retailers decide to pass on more of their savings to shoppers, the report said, as stores vie for consumer dollars.
It is not all good news, however, as the price of ham is at an all-time high – up 5.2 percent from last year. Canned green beans, canned pumpkin and russet potatoes are also more expensive this year, according to Wells Fargo.
‘Despite food-at-home inflation slowing to 2.4 percent since last October, this year’s celebration will not be less expensive,’ the report read.
‘That’s because there are record price spreads between the wholesale price supermarkets pay versus the retail prices consumers pay – and the difference is impacting some of the most popular holiday dishes, including turkey and ham.’
Target’s meal includes all the traditional Thanksgiving fixings, including a turkey, russet potatoes, green beans and stuffing mix
At $20 for four people, Target’s Thanksgiving meal is also $5 cheaper than it was last year
Target’s Thanksgiving meal is the latest addition to a growing holiday price war between retailers, as cash-strapped Americans are increasingly searching for cheaper groceries
Target’s Thanksgiving announcement comes after it slashed prices on over 2,000 items earlier this month – ranging from snacks to toys and cold medicine – in a bid to attract bargain-seeking shoppers this holiday season.
This is the second time this year that the retailer has cut prices to lure in inflation-weary consumers as it looks to win customers from Walmart.
The price reductions come ahead of a shorter-than-usual key shopping period this year, and against a backdrop of frugal consumer behavior. Together, they have prompted a warning from a former Target executive that retailers will struggle.
Target rival Walmart has also been pushing to keep prices on essentials low as an increasing number of Americans are turning to discount shopping.
Gomez, Target’s chief commercial officer, told CNN that customers have responded positively to the price cuts as they remain ‘choiceful’ in their spending.
He said customers are trying to stretch their budget in different ways. This includes buying in bulk to save money, or purchasing smaller and cheaper items compared to their full-size counterparts.
Gomez added that customers ‘continue to prioritize the holiday moment,’ but added ‘they are looking for affordable options to do that.’
