Target’s free offer for holiday shoppers takes an unexpected turn

Target is betting big on holiday shopping to help it recover from the sales slump it has faced over the past several years. 

The retailer’s performance took a turn for the worse this year, with the looming threat of tariffs raising prices in its stores. It also sparked consumer anger in January for scaling back its diversity, equity, and inclusion policies, which caused multiple boycotts.

During the third quarter of 2025, Target saw a 3.8% year-over-year decline in comparable store sales, while its operating income shrank by 19%, according to its latest earnings report. Also, data from Placer.ai revealed that foot traffic in Target’s stores dropped by 2.7% year over year.

Amid low sales and weak demand, Target has recently doubled down on attracting holiday shoppers by focusing on affordability. For example, last month, it launched a $20 Thanksgiving meal deal and lowered prices on 3,000 everyday items to attract price-conscious shoppers. 

“As we approach the holidays, we know consumers remain cautious,” said Target Chief Commercial Officer Richard Gomez during an earnings call on Nov. 19.

“Sentiment is at a three-year low amid concerns about jobs, affordability, and tariffs. Yet they remain emotionally motivated. They want to celebrate with loved ones without overspending. Our job is to help them do just that.”

Consumer sentiment dropped significantly in November as concerns about the economy intensified, particularly during the government shutdown, which lasted from Oct. 1 to Nov. 12. 

November 2025 consumer sentiment:

• In November, consumer sentiment decreased by almost 5% from October.
• Specifically, there was an over 10% drop in sentiment regarding current personal finances and buying conditions for durables.
• Also, year-ahead inflation expectations (which measure how much consumers expect prices to increase) only decreased from 4.6% in October to 4.5% in November.
  Source: University of Michigan

“After the federal shutdown ended, sentiment lifted slightly from its mid-month reading,” said University of Michigan Surveys of Consumers Director Joanne Hsu in a statement. “However, consumers remain frustrated about the persistence of high prices and weakening incomes.”

Target's Black Friday free offer frustrates shoppers

To help lure deal-hungry shoppers, Target also launched several Black Friday deals that kicked off Nov. 23, including savings of up to 50% off products in top categories. 

However, one of Target’s generous Black Friday promotions took a turn for the worse, fueling outrage on social media.

On Nov. 28, Black Friday, Target offered the first 100 shoppers who entered its stores at 6 a.m. a complimentary “swag bag” containing free items. 

It also said that one of these bags contained an extra prize valued at $99 or more. Those bonus prizes included a Ninja Slushi, Beats headphones, a Laifen hairdryer, and a $100 Target gift card. 

Related: Target’s efforts to make amends with customers hit a snag

The offer attracted long lines of shoppers, who lined up at Target’s stores as early as 3 a.m. However, some customers who received a gift bag without an extra prize were not satisfied with the items inside it, which included a small bag of gummies, a deck of Uno cards, a travel-size shampoo, and a lip oil. 

“Literally just played myself waiting five hours outside in the cold to try and get this Target swag bag, and I did give everything away pretty much except for the e.l.f. lip gloss and the Uno cards,” said another customer in a TikTok video.  

“This is the swag bag, and I feel like I got nothing,” said one Target shopper in a TikTok video, showing off what was inside the swag bag. 

“Literally so disappointed I was 10 out of 100 and waited three hours for this LOL,” wrote another Target customer, who attached a photo of the contents inside their swag bag in a Reddit post. 

Target falls behind competitors on Black Friday

The release of Target’s swag bags on Black Friday comes during a time when a record number of consumers are seeking Black Friday and Cyber Monday deals due to economic uncertainty. 

Last month, a survey from the National Retail Federation found that approximately 186.9 million people planned to shop from Thanksgiving Day through Cyber Monday this year, marking the largest number of shoppers on record.

Specifically, 70% of consumers said they will shop on Black Friday, while 40% will shop on Cyber Monday. 

More Retail:

• Marshalls makes bold change to return policy ahead of holidays
• Walmart quietly shrinks generous offer for holiday shoppers
• BJ’s Wholesale announces free offer for customers amid struggles

Increased consumer momentum and the launch of generous deals, however, was not enough to prevent Target from falling behind some of its competitors. Exclusive data from Placer.ai, which was shared with TheStreet, revealed that compared to Black Friday in 2024, Target's 2025 Black Friday store foot traffic remained flat.

How retailers performed on Black Friday in 2024 vs. 2025:

• Walmart: Foot traffic increased 2.1%
• Target: Foot traffic remained flat
• Costco: Foot traffic increased 7.7%
• Dollar General: Foot traffic increased 5.7%
  Source: Placer.ai

"Black Friday provided a potent reminder of the resilience of consumer demand and the continued centrality of this specific day to the wider retail holiday period," said Placer.ai Chief Marketing Officer Ethan Chernofsky in a statement to TheStreet.

"Most categories saw visits up compared to 2024, with the remaining either seeing minor declines or flat visit rates," he said. "This is an especially positive sign in a year where Black Friday falls later in the calendar and when the pre-Christmas period looks especially poised for a significant spike in overall visits. Those bullish on the potential of the holidays in 2025 received a powerful sign that those predictions would prove themselves out."

Related: Target makes bold changes to keep customers from fleeing stores