Target’s taking the ‘low’ road

Target said on Tuesday it will rely more on low prices to compete with rivals like Walmart and Amazon — admitting many of its stores needed freshening up and telling Wall Street its sales and profit estimates for 2017 are too high.

In heavy trading, shares of the retailer plunged to their lowest levels in 2¹/2 years. Many of its rivals fell, too, including deep discount chains that will now face tougher competition on prices.

Target vowed aggressive promotions at a meeting with analysts and investors, saying new brands and investments in technology and small stores will allow it to eventually win back market share.

Although its e-commerce operation is growing, Target reported its third straight quarter of lower sales from existing stores, citing “unexpected softness” there.

Target also forecast firstquarter profits short of Wall Street estimates. Shares sank 12 percent, to $58.77, their biggest one-day percentage drop since 2008.

The stock has lost a quarter of its value since the holiday shopping season started in November, sinking to levels last seen in August 2014.

The retail industry faces pressure from lackluster US economic growth, intense competition from Amazon and other online rivals and concerns about President Trump’s planned border tax.