Target shoppers will love this (Walmart may not)
The chain plans to double down on one of its big advantages over Walmart and Amazon.
Targets have always relied on certain undefinable magic. The chain has always been a little more sophisticated than its rivals, and in recent years has regained the magic of ‘Tarjay’ by focusing more on its stores.
Yes, the company has invested in digital and distribution, but the core of the company remains a brick-and-mortar presence, and CEO Brian Cornell understands that perfectly. He has led the renovation of more than 1,000 of his company’s stores, but this is more than just a new paint job or an updated look.
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Target’s mods were market-specific mods for stores. For example, in a market where customers may walk, snacks and other takeaway items may be placed in front of the store. Also, touristy markets may have pre-arranged supplies for when people are away from home.
Add that Target has created an innovative owned and operated brand and has partnered with Ulta Beauty. (Ultra)- Get Free Report,Starbucks (SBUX)- Get Free ReportWalt Disney (DIS)- Get Free ReportApple (AAPL)- Get Free Report It’s easy to see why many people see targets as destinations. Yes, you can get what you want, but you can also find new celebrity collaborations or sip a latte while searching for the latest affordable beauty products.
In addition to understanding the value of his chain’s physical location, Cornell also understands that evolution must be constant. “Guest-centered service, store operation network, supply chain facilities, digital experiences and other features,” announced in a press release.
And while some of that money goes into back-end changes that customers never see, the whole point of the investment is to improve the shopping experience.
‘Affordable Delight’ Targets, Invests in Better Shopping Experience
Target’s approach is very different from Walmart (WMT)- Get Free Report Its main brick-and-mortar rival. Walmart stores can be said to be efficient, and while the chain is clearly focused on offering low prices, most of the retailer’s stores are unattractive. Maybe it’s because they need things, not because they particularly enjoy the shopping experience.
It’s clear Target is taking a different approach and wanting to make customers want to visit their stores.
CFO Michael Fiddelke said:
Target plans to add 20 new stores this year and completely renovate another 175 stores (many others will be refreshed as well).
“Many of our new stores will include new design elements that reflect our local communities, new brands, assortments, services and experiences that highlight our sustainable features,” the company shared.
The renovation will bring Ulta Beauty and Apple’s shop-in-shop experience to more locations.
At the heart of the change, however, is what Target has defined as offering affordable pleasure.
Target plans to launch or expand more than 10 privately owned brands, offering thousands of new and differentiated products to guests at incredible prices. , with more items starting at $5, $10, and $15 to appeal to value-conscious shoppers. We are enhancing our Target Circle loyalty program and launching a new advertising campaign that celebrates how Target delivers affordable delights,” the company explained.
Additionally, the chain plans to add free drive-up returns to many of its locations. This allows the user to initiate the return process in his Target app, picking up and dropping off items.
https://www.thestreet.com/retailers/target-has-5-billion-plan-to-improve-your-shopping-experience Target shoppers will love this (Walmart may not)