Target is intensifying competition in the grocery sector this holiday season, offering a complete Thanksgiving dinner for four people for under $20, its lowest price yet and less than $5 per person.
Target announced Wednesday it is bringing back its popular holiday meal package at an even lower price point than last year, as families continue facing elevated grocery costs heading into the holiday season.
The meal includes a Good & Gather premium frozen turkey up to 10 pounds, a 5-pound bag of russet potatoes, Ocean Spray cranberry sauce, Stove Top stuffing, Heinz turkey gravy, French bread and frozen corn.
For shoppers who prefer purchasing their turkey separately, Target is maintaining turkey prices at 79 cents per pound, matching last year’s rate.
Target is also rolling out an expanded selection of ready-to-serve sides and desserts, all priced at $4.99 each. New additions include harvest squash empanadas, chicken pot pie empanadas and mashed sweet potatoes with cinnamon and brown sugar, alongside traditional pumpkin and apple pies.
The aggressive pricing comes as retailers compete for budget-conscious holiday shoppers. The Minneapolis-based retailer operates nearly 2,000 stores nationwide and has struggled to reverse weak sales in a more competitive retail landscape. The company has been subject to consumer boycotts over its rollback of diversity, equity and inclusion policies, its CEO resigned in August and the company announced in October it will lay off approximately 8% of its global corporate workforce.
The under-$20 meal deal pricing became effective as of 2 November.
The price reduction reflects broader retail dynamics as major chains compete aggressively for market share during the critical holiday shopping period. Thanksgiving meal promotions have become a focal point for grocery competition, with retailers using loss-leader pricing to attract customers who will likely purchase additional items beyond the promotional bundle.
Target’s decision to price below the psychologically significant $20 threshold represents strategic positioning against competitors offering similar meal deals. The per-person cost of less than $5 provides clear messaging for families seeking affordable holiday options amidst ongoing inflation concerns.
The meal package composition covers traditional Thanksgiving essentials whilst relying heavily on branded products from established manufacturers. The inclusion of Ocean Spray, Stove Top, and Heinz products suggests the retailer secured favourable supplier agreements to enable the aggressive pricing whilst maintaining recognisable brand offerings.
The Good & Gather private label turkey anchors the package, allowing Target greater margin control compared to branded poultry. Private label products typically offer retailers higher profit margins, making them strategic vehicles for promotional pricing that appears more generous than it might be on a pure cost basis.
The separate 79-cent-per-pound turkey pricing accommodates shoppers who prefer larger birds or specific turkey preparations not included in the bundle. This tiered approach allows Target to capture both deal-seeking customers and those willing to pay slightly more for customisation.
The expanded $4.99 side dish and dessert selection addresses convenience-seeking shoppers willing to trade preparation time for ready-made options. The empanada additions reflect evolving American palates and Target’s attempts to differentiate its offerings beyond traditional Thanksgiving fare.
Mashed sweet potatoes with cinnamon and brown sugar represent another departure from conventional sides, appealing to customers seeking elevated flavours without extensive kitchen work. The uniform $4.99 pricing creates simple decision-making for customers building their holiday menus.
Target’s current promotional strategy unfolds against a backdrop of significant corporate challenges. The company’s sales performance has lagged expectations as it navigates increased competition from discount retailers, traditional grocers, and e-commerce alternatives.
The diversity, equity and inclusion policy changes that sparked consumer boycotts represent ongoing reputational challenges. Some customer segments view the policy reversal negatively, potentially affecting store traffic and sales, particularly in progressive markets where Target historically performed strongly.
The CEO resignation in August signalled board-level dissatisfaction with company direction and performance. Leadership transitions create uncertainty and can delay strategic initiatives as new executives assess operations and establish priorities.
The October announcement regarding 8% workforce reductions indicates cost-cutting efforts to improve profitability amidst sales pressures. Corporate layoffs suggest the company faces margin pressures that aggressive holiday pricing may exacerbate in the short term.
These challenges make the under-$20 Thanksgiving deal particularly strategic. Driving store traffic during the holiday season could generate sales beyond the promotional items, helping offset weaker performance in other categories or periods.
Holiday shopping patterns typically show customers purchasing additional items when visiting stores for specific promotions. Target likely projects that customers attracted by the meal deal will buy beverages, appetisers, decorations, or other products at regular margins, improving overall transaction profitability.
The timing of the promotion, active since early November, allows Target to capture early holiday planners whilst maintaining the offer through Thanksgiving week. Extended availability reduces logistical pressure from last-minute demand surges whilst encouraging early shopping.
Grocery inflation remains a significant consumer concern despite some moderation from peak levels. Food prices remain substantially higher than pre-pandemic baselines, making holiday meal costs a sensitive issue for many families.
Target’s pricing positions the retailer as responsive to affordability concerns whilst potentially pressuring competitors to match or beat the offer. The resulting price competition benefits consumers but can compress retailer margins across the industry.
The nearly 2,000-store footprint provides Target broad geographic reach for the promotion, though availability may vary by location based on local demand and inventory management. Customers should verify specific product availability at their local stores.
