Discounts and sales events have remained a significant sales driver, as consumers emerge from a more than two-year stretch of high inflation. It’s unclear how much those deals will cut into Target’s and other retailers’ profit margins, and whether sales will keep improving if promotions fade away.

Target leaned in heavily toward promotions and sales during the holidays, a strategy that seems to have left it in the middle of the pack of retailers for the season. The Minneapolis-based retailer said Thursday its comparable sales rose about 2%,

Shares of Target ($TGT) were in the spotlight as the retailer posted better-than-expected sales numbers for the holiday shopping season, lifting retail sentiment. The company said its total sales during the two holiday months grew 2.