Target said on Tuesday it will hire nearly 100,000 employees for the holiday season and offer deep discounts starting October, as the U.S. retailer braces for the competitive shopping period.

This year, U.S. holiday sales are expected to grow at their slowest pace in five years, as consumers spend cautiously due to tightening household budgets and lingering worries over the economy.

Even as the U.S. job market starts to cool, Target's hiring numbers for 2023 match its plans to hire 100,000 employees over the last two years.

Last week, a report from career consultancy firm Challenger, Gray & Christmas showed that weaker spending coupled with increased labor costs would result in U.S. retailers hiring the lowest number of seasonal workers this year since 2008.

In 2022, the world's largest online retailer planned to hire 150,000 employees in full-time, seasonal and part-time roles across its operations in the U.S., while retail bellwether Walmart had said it would add 40,000 workers in seasonal and full-time roles.

Macy's said on Monday it would hire more than 38,000 full and part-time seasonal workers, fewer than the 41,000 employees it had announced to hire in 2022.

On the other hand, last week retailer Bath & Body Works said it was looking to hire 2,500 seasonal employees at its four Ohio-based distribution centers.

Target also said it is offering items under $25 across apparel, home, food and essentials and is returning back with its fall savings event starting Oct. 1-7, giving discounts on items including trending gifts and everyday essentials.

Amazon is also kicking of its second 'Prime Day' for the year on Oct. 10-11 in attempt to lure in bargain-hungry customers.

(Reporting by Ananya Mariam Rajesh and Deborah Sophia in Bengaluru; Editing by Shilpi Majumdar and Rashmi Aich)