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Target Circle Week 2025: Will It Boost Back-to-School Sales Early?

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Key Takeaways

  • TGT debuts Circle Week with up to 50% off key items to attract early back-to-school and college shoppers.
  • Deal of the Day returns with three daily offers; Target Circle 360 perks aim to boost loyalty engagement.
  • TGT aims to drive traffic and conversion by emphasizing affordability and time-sensitive promotions.

Target Corporation (TGT - Free Report) is kicking off the summer savings season with Target Circle Week, a weeklong event that will run from July 6 to 12 and is designed to capture early back-to-school and college shopping traffic. Shoppers can expect discounts of up to 50% on hundreds of items, including school supplies, electronics, uniforms, backpacks and dorm room decor. The event aims to appeal to early-bird shoppers looking to stretch their budgets and beat the seasonal rush.

With consumer wallets still under strain, the emphasis on affordability and urgency is well-timed. The return of “Deal of the Day,” now expanded to three daily offers, is tailored to encourage repeat visits throughout the week. Meanwhile, members of Target Circle 360 — the paid membership program — receive 24-hour early access and a $50 discount on their first same-day delivery order. These benefits aim to drive engagement, boost conversion and expand participation in Target’s ecosystem.

The inclusion of "Deal of the Day" and early access for paid Target Circle 360 members are tactics to create immediate demand. Moreover, targeted discounts for students and teachers, including reduced membership fees and a one-time 20% storewide student discount, are strong incentives. These promotions not only aim to increase immediate sales but also to deepen engagement with Target's loyalty programs.

By focusing on deep discounts and offers on back-to-school essentials, Target aims to attract a substantial number of shoppers ahead of the peak season. The initiative underscores a strategic effort to capture early market share and drive traffic.

How Target's Circle Week Stacks Up Against Walmart and Amazon

Walmart Inc.’s (WMT - Free Report) summer savings event is back, promising an expansive shopping experience from July 8 to July 13. Customers can expect an array of deals across categories like electronics, home essentials and back-to-school items. Featuring brands like Samsung and Vizio, Walmart offers both in-store and online shopping options, including enhanced AI features for a seamless shopping experience. With flexible choices such as curbside pickup and doorstep delivery, Walmart aims to cater to diverse customer needs.

Amazon.com, Inc. (AMZN - Free Report) is intensifying its back-to-school strategy with a four-day Prime Day event from July 8 to 11, rather than the usual two days. Known for deep discounts on school supplies, tech and home goods, Amazon aims to capture early shopper demand. With its robust digital platform and Prime perks, Amazon remains a key player in the race for seasonal traffic, directly challenging retailers like Target and Walmart with its expanded promotional window.

Target’s Price Performance, Valuation and Estimates

Target stock has declined 6.7% over the past three months against the industry’s growth of 1.6%. 
 

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Target’s forward 12-month price-to-earnings ratio of 12.75 reflects a lower valuation compared with the industry’s average of 32.30X. TGT carries a Value Score of A.
 

Zacks Investment Research
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The Zacks Consensus Estimate for Target’s current financial-year sales and earnings per share implies a year-over-year decline of 1.9% and 15.2%, respectively. 
 

Zacks Investment Research
Image Source: Zacks Investment Research

Target currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.


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