May 20 (Reuters) - Target ( TGT ) will be lowering

prices on at least 5,000 frequently shopped products across its

assortment ranging from milk to diapers, the big-box retailer

said on Monday, as it looks to attract budget-stretched

customers.

Still-high food prices and borrowing costs have made

cash-crunched customers more conscious of their spending on

pricey items and look for cheaper products in stores and online,

forcing retailers to lower prices to get more consumers to their

stores.

Target ( TGT ) also faces stiff competition from larger rival

Walmart ( WMT ) that already offers products at lower prices,

and last week signaled a resilient U.S. shopper, betting on

easing inflationary concerns.

"We know consumers are feeling pressured to make the most of

their budget," Rick Gomez, chief food, essentials and beauty

officer at Target ( TGT ), said in a statement.

Target ( TGT ) said it also plans to cut prices on items such as

meat, bread, soda, fresh fruit and vegetables, snacks and yogurt

in markets ranging from Phoenix and Minneapolis to New Orleans

and Baltimore.

The company, set to report its first-quarter results on

Wednesday, said it had currently cut prices on about 1,500 items

including frozen chicken breast and shredded cheese among

others, with more planned to take effect over the course of

summer.

The retailer also said these price cuts - which will be

found across dozens of national brands as well as Target's ( TGT ) own

private brands - were in addition to the discounts it had

planned to offer across its stores as part of Memorial Day

celebrations.

Earlier in May, a source familiar with the matter said that

McDonald's U.S. franchises also considering launching a

$5 meal deal to draw more inflation-hit customers to its

restaurants.