Target Circle Week: 40% Off Kid's Shorts at $3 Today

Target is offering 40% off kids' and toddlers' shorts and tanks today only as part of its Circle Week promotion. The Cat & Jack private-label line leads the deals: tanks start at $3, skorts at $4.80. Free in-store pickup is available. Shipping is free on orders over $35.

Circle Week is Target's mid-year answer to Amazon Prime Day and Walmart's summer sales. The retailer uses the event to pull forward demand, clear seasonal inventory, and drive foot traffic. Today's focus on summer basics – shorts and tanks – suggests the company is making room for back-to-school merchandise that starts arriving in August.

Private-label goods like Cat & Jack carry higher margins than national brands. Even at 40% off, analysts have pegged the gross margin on these items in the mid-30s, which keeps the promotion profitable. The depth of the discount, however, signals an aggressive push to move units quickly. One-day flash sales limit the drag on margins by compressing the discount window.

For Target's stock, the near-term impact is muted. Shares have traded near $150 for weeks, range-bound as traders wait for same-store sales data and the next earnings report due mid-August. A successful Circle Week could reduce the need for deeper clearance later in the quarter. Inventory levels have been a key metric for retail analysts since Target's 2022 markdown cycle. The company has since tightened ordering and used promotions like Circle Week to prevent overstock.

Competitive positioning matters here. Amazon's Prime Day is expected in mid-July. Walmart runs its own "Deals for Days" event in the same window. Target's Circle Week acts as a preemptive strike on summer apparel dollars. The 40% off on basics is deeper than the typical 20-30% seasonal markdown, which tells the market Target wants to clear these categories before the competition rolls out broader discounts.

From a household budget angle, $3 tanks are cheap enough to pull in price-sensitive shoppers. Target uses the private label to control the discount depth – it owns the margin stack, so it can cut price without negotiating with vendors. That flexibility is a structural advantage over department stores that must manage brand relations.

The sale ends at midnight. Target reports fiscal second-quarter earnings on Aug. 19. Investors will be watching the inventory line and gross margin rate in that print for signs that Circle Week drove profitable volume.