June 23, 2024

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Target’s new favorite buzzword is ‘value’

2 min read

A customer shops the holiday section at a Target store in Clifton, N.J.

Adam Jeffery | CNBC

Target‘s goal this holiday season: be more like Walmart.

The retailer’s leaders said customers will see thousands of gift ideas under $25, store displays that highlight affordability and low-priced Thanksgiving ingredients.

But the discounter will do it with a Target twist.

The company will try to stand out with its exclusive brands and fresh items, such as a new line of jewelry from Kendra Scott, Chief Growth Officer Christina Hennington said on an earnings call Wednesday.

“If there’s one thing that we’ve seen, is in an environment where people are making choices and they might have constraints with their budget, the motivation to buy is really ‘Is this going to add value to my life? Is this something intriguing and feels relevant or fashion forward or is really for me?'” Hennington said.

Target is trying to play into customers’ hunger for deals, which it stressed to investors on the call. The company’s executive team used the word “value” 17 times. Altogether they used the words “affordable,” “affordability” or “affordably” seven times.

Target has struggled to improve sales as shoppers focus more on essentials while being choosier when buying clothing, electronics and more. The Minneapolis-based retailer posted a strong earnings beat on Wednesday, but its sales declined year over year and it said it expects that to continue in the holiday quarter.

At stores, Target has increased the number of displays at the end of aisles that focus on just a couple of price points, Chief Operating Officer John Mulligan said on the call. Going into the holiday season, nearly two-thirds of those displays meet that standard. They send an “easy to understand value message,” he said.

And more than a week before Thanksgiving, online shoppers have already been hit with a wall of Black Friday discounts on the company’s website, such as 50% off artificial Christmas trees.

Rivalry with Walmart


2023-11-15 14:50:40

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