Target says it’s cutting prices, and its shares drop

NEW YORK – Target (TGT) said on Friday that it’s discounting thousands of products throughout its stores, an announcement that sent its stock down and dragged most of the retail sector with it.

Retailers in general have struggled to compete with Amazon (AMZN) and the countless shopping options available online.

However, Target did report last quarter that its online sales jumped 32 percent, and its revenue beat Wall Street expectations.

The Minneapolis-based retailer is spending billions to remodel stores and strengthen its online business. It said Friday it will continue “to offer additional savings on the right products at the right times.”

Shares in Target were down more than 3 percent in afternoon trading before rebounding slightly to down 2 percent in late-day trading. Shares in Sears (SHLD) fell nearly 4 percent, and Walmart (WMT), Dollar General (DG) and Costco (COST) all fell around 1 percent after Target’s announcement.

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