Target Corporation (TGT) Has No Option But To Lower Prices, Says Jim Cramer

Target Corporation (NYSE:TGT) is one of the .
Target Corporation (NYSE:TGT) is a frequent appearance on Cramer's morning show. He often discusses the firm in the context of other retailers such as Walmart and Costco. However, while Cramer is optimistic about Walmart and Costco's ability to withstand the inflationary impacts of President Trump's tariff, he isn't so confident about Target Corporation (NYSE:TGT). A key point on Cramer's mind is price. He has asserted multiple times that the firm has to lower its prices and bring them down to pre-COVID levels in order to be competitive. Cramer holds this opinion because Walmart and Costco are able to leverage their scale to provide customers with lower prices and attract foot traffic. Here are his latest thoughts about Target Corporation (NYSE:TGT):
'I think Target has to really start making a statement that we're going to lower prices. Now they're going to say they have lower prices. They're going to have to lower them to 2018. . . in every aisle there has to be two to three items that are 2018. That's what they have to do.
In his previous comments about Target Corporation (NYSE:TGT), Cramer discussed the firm's business in detail:
'Right but Brian was very upset. Wanted to do much better. Recognizes that frankly that his prices might be too high. Has to discount more. . .look, let's just call it. It was a bad quarter. Now I know when I pressed him on these DEI issues when there was backlash, he did not say there was. And I just went back and asked about the conference call that they just did with reporters and again, he's just insisting that it's not really, it's not, just not mentioning it as being a factor. I find that, surprising. But David, the problem with Target I think, and I'm gonna come back. . .is scale.
A woman purchasing groceries at a Target store, with a cart full of products.
'Go look at the prices, when I. . .would walk with Brian through a Target store, I said this is too high, this is too high, this one's too high. Where is the 2019? How about 2019 prices? I know that right now Walmart's got some 2019 prices.
While we acknowledge the potential of TGT as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.
Disclosure: None. This article is originally published at Insider Monkey.

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