Michaels joins Target in cutting prices on thousands of items

Two major retailers are cutting prices once again, while also signaling that reductions are either winding down or won’t be their sole focus in the year ahead.

Michaels is lowering its everyday price on more than 3,000 items across categories including arts and crafts, home decor, and its new The Party Shop and The Knit & Sew Shop, which were stood up last year after the closures of Party City and Joann’s.

The move follows an even bigger round of price cuts nearly two years ago, when the company cut prices on more than 5,000 items. The cuts were also steeper, ranging from 15%–40%, whereas the average for this round is 10%.

The company said the latest price reductions “represent the final phase of a value-driven initiative that has been rolled out over the past several months.”

Target, meanwhile, is slashing price tags on 3,000 items, with a focus on what’s on trend this spring in the apparel, home assortment, baby essentials, and select food and beverages. Similar to the situation at Michaels, these reductions are a step down from those made in the spring of 2024, when price cuts on 5,000 items ranged between 15% and 40% but now are mostly between 5%–20%, according to the company.

This latest round followed Target’s announcement that it was targeting “busy families—which it defines as digitally savvy, style-focused, and value-conscious consumers” as part of a sweeping new merchandising strategy aimed at returning the company to growth in 2026. The strategy goes beyond pricing, however, as the company emphasizes the value proposition of its offerings as much as cost. “We want that smile to get bigger when you flip over the price tag,” CEO Michael Fiddelke told shareholders earlier this month. “But for us, it’s not always just price that delivers true value.”