Target plans alternative to cutting prices

— -- Bucking the trend toward price cutting, Target tgt plans a limited-time-only holiday promotion the week after Thanksgiving to lure customers into stores.

Limited-time-only deals — in which products are in limited supply and are sold for only a short time — are a key part of Target's strategy to attract shoppers, particularly younger ones. For example, Target regularly rotates trendy designer offerings for six-week to 90-day periods.

Target's plan comes as price-cutting holiday deals are up 12% this year over last, says ShopLocal, which handles online and circular ads for major retailers.

Target rival Wal-Mart wmt has announced two big price cuts already for this holiday season, including reductions on about 15,000 products.

But while Target, like all retailers, has occasional markdowns, its focus is on specialty merchandise.

Target's strategy "is a great differentiator that brings customers into the store," says retail strategist John Champion of consulting firm Kurt Salmon Associates. "It's the way to break that consumer cycle of always looking for the next sale."

Younger-oriented apparel stores Zara and H&M also turn over designer offerings often to build excitement with customers, says Champion. Customers know if they don't buy something when they see it, they might miss out.

The 20 limited-time gifts Target is offering starting Nov. 25 include a High School Musical 2 four-doll collector's set, a Sony MP3 Video Player and a reissued version of the original Tickle Me Elmo from 1996.

Limiting when and how many of an item are offered "creates a sense of urgency and excitement," says Sally Mueller, Target's director of marketing planning. "People need that in retail today. They are looking for new and special items."

Limited-time offers bring out the competitive side of shoppers, especially the younger ones, says Charles Goodstein, a psychiatry professor at New York University's medical school.

Young shoppers are "more likely to want to respond to immediacy," he says. "But it's not just between kids but between parents who have bought into the notion and go out of their way to be the one who has the highly promoted toy of the moment."

Phil Rist of consumer insights firm BIGresearch doesn't think limited-time offers "build long-term customer value," because you "probably make more people unhappy than happy."

But he acknowledges that the deals aren't going away. "Are retailers going to continue to do it? Yes, because it does drive traffic."