Target’s holiday push stresses affordability, exclusives and an AI assistant

New Wholesale Rules // October 21, 2026 Target’s holiday push stresses affordability, exclusives and an AI assistant By Julia Waldow Target is betting on daily deals and a digital assistant to woo budget-conscious shoppers this holiday season.

The retailer is offering more than 8,000 new gifts as part of its holiday assortment, with more than half exclusive to Target. Most new items are $20 or under, with many under $5. Target is also rolling out an AI-powered assistant called Ask Target on Target. com and the Target app.

The tool, available in beta, is conversational and helps guests find inspiration and build wishlists for themselves and others. Target is especially playing up value, quality and affordability, or what it calls “luxe for less.” It’s offering a $35 throw blanket, for instance, as well as a $45 cashmere sweater, $10 pajamas and $5 candles. Each day from Nov.

1 to Dec. 24, Target will offer a new Deal of the Day, with early Black Friday deals running Nov. 5–7. The company’s strategy comes as shoppers this holiday season contend with inflation, higher energy costs and tariff-driven price increases.

“Value plays an important role all year, especially so during the holiday season,” Target CEO Michael Fiddelke told members of the media on Oct. 20. “Yes, of course, that means incredible pricing.

… It also means finding that right item, whether it’s for them or whether it’s a gift for a loved one, and to do all of that in a place that can bring a little joy to that hectic season is where we play such an important role, as Target.” Data shows that consumers aren’t leaving their economic concerns behind heading into the holidays.

A recent National Retail Federation survey found that more than half of holiday shoppers (56%) say the state of the economy will affect their holiday spending plans this year.

Among those consumers, 43% plan to shop for sales more often, 31% will comparison shop online more frequently, and 29% will make greater use of coupons to make the season more affordable. Still, NRF expects that U. S. holiday retail sales for November and December will grow by 4. 2% year over year, reaching a record $1.

013 trillion — although this could stem from higher prices. “This year’s forecast reflects our confidence that consumers will prioritize the holiday season even as they remain mindful of their budgets,” NRF President and CEO Matthew Shay said in a press release.

“Retailers are prepared to meet that demand with competitive prices, value and choices for every budget.” At Target, that means having more price-point variation this holiday season, said Cara Sylvester, executive vice president and chief merchandising officer at Target.

“We have a ton of products specifically focused on key price points this year,” she said. Gesturing to some candles, she added, “We didn’t have anything like this at $5 last year. We might have had a beautiful candle for $10. Now, we’ve got $5 options, $10 options, $15 options.”

One of the ways Target is able to stay at these price points is by leaning into its owned brands, which span categories from apparel to home to beauty. Many of this year’s holiday food items, like a sugar cookie kit and hot chocolate bombs, are from Target’s private labels, like Favorite Day and Good & Gather.

Target is also selling mix-and-match scents from its exclusive fragrance brand Haeze, as well as $5 Gigglescape plush toys. What’s more, the company is offering 170 new baby apparel gifting items, all of which are exclusive to Target. At Target, the apparel business is 80% owned brands, Sylvester said.

That allows the company to be competitive with, say, cashmere. “As we think about our decades of sourcing and design capabilities, that enables us to have strategic partnerships with our suppliers, to be able to find the right product, really lean into that fabric, and then get the right cost and pricing for our guests,” she explained.

There will still be plenty of national and international brands for sale, including Lego, Nintendo and SharkNinja. Beauty and food Advent calendars will also be front and center this year, as well as stocking stuffers and NeeDohs. There will also be a big wellness push.

“We’re leaning into more wellness or protein-forward items, even for the holiday season,” Sylvester said. Shoppers can browse these products and others using Target’s new AI assistant.

The tool, which launched in beta and now has expanded features, lets users create a holiday wishlist, ask questions about products and solicit recommendations like, “Looking for a quiet luxury-inspired gift for her, focusing on clothing and accessories under $50.” The AI assistant, while rolling out in time for the holidays, is not holiday-specific, Syl