Retailer stocks took a midday dive Friday, after Target Corp. said on its website that it had “lowered prices on thousands of items,” fueling concerns over a price war amid a lackluster sales environment. Target’s stock was down about 1.5% just before its announcement, but losses widened to 3.2% in afternoon trade. The discount retailer said the price cuts are an attempt to end customer uncertainty over the timing of discounts on certain products. “We want our guests to feel a sense of satisfaction every time they shop at Target,” Chief Merchandising Officer Mark Tritton said in a statement. “Part of that is removing the guesswork to ensure they feel confident they’re getting a great, low price every day.” Shares of rival Wal-Mart Stores Inc. went from down 1.2% just before Target’s announcement to down 2%. Elsewhere, shares of Kohl’s Corp. shed 1%, J.C. Penney Co. Inc. gave up 1.7%, Macy’s Inc. lost 1.4% and Nordstrom Inc. fell 0.5%. The SPDR S&P Retail ETF went from a loss of 0.4% to a decline of 1.3%, before recovering to be down 0.8%. Target’s stock has tumbled 21.5% year to date, while the retail ETF has lost 9.0% and the S&P 500 has gained 10.1%.
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