If Target underperforms this holiday season, it won’t be for lack of trying.
The bull’s eye has its sights on besting last year’s lackluster Q4 performance with more giftable products, easier ways to give, simplified pricing and engaging in-store experiences.
The retailer is taking a bit of a risk by changing its promotions strategy but it’s hoping that the company’s everyday low price messaging will be enough to entice price-sensitive shoppers. The big-box chain doesn’t plan to sit out key periods like Black Friday and Cyber Monday, but “priced right daily will be our regular drumbeat,” according to Mark Tritton, Target’s CMO.
Withholding some deals may create a challenge though given the results of PricewaterhouseCoopers’ 2017 Holiday Outlook survey, which found that 39 percent of millennials and 27 percent of the young Gen Z demographic are motivated by deals. But these shoppers will be able to get their discount fix via discounts like the chain’s weekend deals, which kickoff on Nov. 11.
To appease those on a budget, the store has thousands of exclusives that top out at $15. These items will be curated to help shoppers identify the best present for everyone on their list. Plus, $1 stocking stuffers will be highly visible.
[Read more about how the retail community is ramping up for the holidays.]
Target’s new slate of private label collections, including athleisure line JoyLab, men’s Goodfellow & Co. and Project 62 for the home will be a focus during the holidays along with the launch of Hearth & Hand with Magnolia, the home décor line from HGTV stars Chip and Joanna Gaines.
For the die-hard online shopper and those who mean well but never get the present exactly right, Target.com’s GiftNow feature will allow consumers to select a gift—say a sweater—and send the recipient an alert that gives them the opportunity to change product attributes like size and color prior to the item shipping.
And speaking of shipping, the retailer has announced all items ship for free starting on Nov. 1 with no minimum purchase. Shoppers can also opt to pick up in store, in most cases within an hour; sign up for Restock, which provides next-day deliveries on essentials; and Minneapolis-St. Paul residents don’t even have to leave their cars thanks to the retailers’ Drive Up service.
For REDcard holders who opt to hit the stores, the company’s app will soon incorporate a mobile wallet feature.
In-store shoppers will also be treated to experiences like seasonal photo booths, holiday treats and toy demonstrations.