December 15, 2025
Photo courtesy of Target
Does Boutique Retailing Work for Target?
Seeking to recapture its “Tarzhay” reputation, Target opened a “one-of-a-kind” concept in lower Manhattan, Target SoHo — featuring rotating merchandise, curated displays chosen by celebrities and influencers, and numerous Instagrammable moments to support both discovery and inspiration.
A centerpiece of the concept, representing a remodel from a former smaller store at Broadway and Houston, is “The Drop,” a long, red hallway at the entryway that resembles the inside of Target’s Bullseye logo (image above). The section displays themed seasonal styles and curated items that are rotated out every four to six weeks.
Target said in a press release, “It’s not just a display — it’s a vibe, a destination and a reason to return again and again. With new collections dropping monthly, Target SoHo keeps pace with guests’ ever-evolving mindset — delivering fresh, relevant and exciting finds across fashion, beauty, home and lifestyle.”
At the back of the first floor is the “Broadway Beauty Bar,” which is designed for selfies and social media posts. It likewise features a rotating and curated assortment of Target’s beauty merchandise, including fragrance brands exclusive to Target, and trendy mini versions of face washes, lip glosses and more from national brands.
At launch, Target is featuring beauty items chosen by celebrity makeup artist Katie Jane Hughes. Target said, “It’s a beauty playground designed for experimentation, creativity and social sharing. Guests can explore trending products, try samples and capture content in the Viral Vanity studio.”
Just in front of the beauty bar is another rotating “Curated By” display of items from across the retailer’s beauty, fashion and home categories, picked by New York City-based celebrities and other creators. Shoppers scan QR codes to further explore that person’s favorites. Target’s first Curated By features favorites from Megan Stalter, an actress and comedian who is in HBO’s “Hacks.”
Nearby, shoppers find the “Gifting Gondola,” which features “a “convex mirror for capturing festive reflections” and highlights merchandise exclusive to Target.
Target described the store as guided by incoming CEO Michael Fiddelke’s vision to put “style and design at the company’s forefront,” with new experiential zones, seasonal activations, and café and event programming planned in the future.
“With Target SoHo, we’re bringing together the best of Target and the best of New York — elevated products, immersive storytelling and an experience that invites guests to explore, express and get inspired,” said Cara Sylvester, executive vice president and chief guest experience officer for Target, in a statement. “This store is a bold reflection of our commitment to style, and it’s just one part of our larger investment in Target’s design-driven future that grows our roots even deeper in New York City.”
Downstairs features a grocery section and limited assortments of household items, toys and tech. In an interview with CNBC, Sylvester said the former store mostly stocked items found in drug and convenience stores and didn’t carry any of Target’s apparel or home décor. She said on the concept’s inspiration, “We said, ‘This is the style and fashion capital. We have to be able to showcase the best.’”
BrainTrust
Allison McCabe
Director Retail Technology, enVista
Carol Spieckerman
President, Spieckerman Retail
Georganne Bender
Principal, KIZER & BENDER Speaking
Recent Discussions
Discussion Questions
How would you rate the Target SoHo concept and its potential for expansion?
Can the concept differentiate its urban concepts or better promote its trendy offerings?
Poll
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It is great to see some new thinking and innovation from Target, especially in terms of creating a more immersive and engaging store experience. While this kind of shop is far from a mainstream Target, it is designed to cater to a particular type of urban audience that demands style and fashion fixes. Though making this work will depend on good execution along with the smart new design. While this experimentation is a good thing, what Target also needs to think about is how it uses some of the learnings from this store to lift the experience across all of its shops.
Target will need to generate a bunch of free publicity to get customers into the store; many people have abandoned the brand altogether.
Press can go both ways. NYC may turn out great. But is there a point where rest of the USA gets tired of NYC locations always getting the star treatment? (Macys 34th St gloating for many years, and Nordstrom bragged about amt of $ spent).
Target has stores in all 50 states, with states like Florida (118 stores) and Illinois (94) having more than New York (90).
THIS is what shoppers expect from Target, not gondolas and apparel racks packed sky high with product. Or worse, on the floor. This concept store provides the Tarjay experience that people once talked about. I am glad to see it is back, even if it’s only one location in NYC.
There are samplings of boutique fixturing in many of the updated Target stores I have visited, so there is hope that this concept will be happen in more locations in 2026.
In the wake of Target’s unimpressive Q3 earnings report (and Walmart’s radiating confidence and raised Q4 guidance), this feels like a major distraction and another hype-y comfort-zone play. Curated boutiques in SoHo won’t fill the gaping hole Ulta will leave in hundreds of stores in a critical category in about 7 months. Time flies…
Well Target can’t exactly stick with Status Quo. Either it’s extremely well researched and tested, so Target should double down and execute like crazy, or they should get 3 or 4 more experiments and innovations into the mix and keep more than one new alternative in play.
It’s a swell space, but unless they do it in every store, what do they gain? OTC it raises expectations… but doesn’t meet them.
I love the idea. Now lets talk about the scalable version, the version that will bring this kind of energy and buzz to hundreds of stores. The version that can be both scalable and localize-able. Remember STORY? Remember STORY at Macy’s? STORY as a curated-for-Manhattan boutique was amazing. STORY as executed in Macy’s branches was not amazing. A flagship boutique curated for a specific location and customer worked great. It turned out to be reeeaaalllyyy difficult to scale. Same concept here. It’s a great start. Now comes the hard part.
It’s refreshing to see Target’s potential. SoHo works because it’s a single showcase receiving exceptional focus. Replicating boutique standards across 50 urban stores requires exactly what Target has been cutting: store labor, merchandising expertise, execution discipline. Does leadership understand that ‘design-driven’ demands operational investment, not the cost reduction that undermines execution fundamentals?
Test and innovate. Key elements of any successful retail experience…never forget that entertainment should be a requirement, and this appears to fit the bill.
Target’s SoHo concept is an intriguing example of the company’s willingness to innovate and experiment with new retail formats, positioning itself as more than a traditional big-box retailer by leaning into curation, design, and experiential discovery. The activation’s curated zones — from “The Drop’s” rotating seasonal styles to influencer-led edits and beauty showcases — reflect a thoughtful effort to tap into urban trend culture and create social-native, buzz-worthy moments that could energize brand perception.
That said, while I respect and appreciate Target’s commitment to pushing boundaries and testing fresh concepts, the broader question for expansion isn’t just can SoHo differentiate but whether it aligns with the foundational discipline of retail execution that ultimately drives sustainable performance. Target’s core competitive advantages historically have been strong private brands, compelling everyday fashion and home assortments, and operational fundamentals like in-stock availability and crisp merchandising. These are the drivers of repeat traffic and profitability — and the areas where execution challenges have surfaced in recent quarters. A boutique, trend-forward experience can certainly elevate perception and attract new guests, but unless the flagship assortment and tactical execution across the broader fleet are rock-solid, upscale urban concepts alone won’t materially shift the company’s overall trajectory.
In evaluating SoHo’s potential for expansion, I’d rate the concept as strategically promising but operationally contingent. Its ability to inform broader store refreshes and reinforce design credibility is valuable; yet, the real litmus for success will be how effectively Target leverages learnings from SoHo to strengthen its everyday in-stock performance, sharpen core merchandising, and deepen assortment relevance in key categories like Fashion, Home, and its private brands, where it has traditionally resonated with guests. Integration of these fundamentals with the spirit of innovation will determine whether SoHo becomes a scalable differentiator or remains a compelling but isolated showcase.
Boutique retailing is a neat concept for Target in specific contexts. A concept like SoHo makes sense in dense, trend-driven markets where discovery and social sharing drive traffic. This works best as a localized destination built around novelty and rotation, not as a template for the broader store base.
If Instagram were a place: This concept will appeal to NYU students in the neighborhood, who may have their parents’ spending power behind them, to buy quick “pick-me-ups” after class or between study breaks. The influencer-inspired, rotating merchandise will keep them coming back.
re: “At the back of the first floor is the “Broadway Beauty Bar,” which is designed for selfies and social media posts.”
Do you see that (as in photo) working for beauty which is very tactile?
High shelves, and limited trial. (vs Sephora style, which is all about the consumer).
Is designing for press/social/photo op (lifespan 10 minutes), the same as a shopper experience where they decide on product and buy?
Target’s sensational SoHo concept reinvigorates the retailer’s elevated store experience with color, cheer and style. This bold vision will differentiate Target from rivals as value shopping soars across demographics and income levels.
This is a high upside push for Target, in establishing more of a visual presence to its leadership in brands. As a retail discount store, this helps differentiate Target from its competition. Some keys to success ahead will be staying more community driven or geographically oriented with its boutique fashion and design concepts.
Experimentation and generating hype is needed for this holiday season for Target for the press. That’s only the first step, the key to return Target to its fomer position is scalable innovation and better store experiences across the board, whether it is store refresh or better collab offerings with hot designers
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It is great to see some new thinking and innovation from Target, especially in terms of creating a more immersive and engaging store experience. While this kind of shop is far from a mainstream Target, it is designed to cater to a particular type of urban audience that demands style and fashion fixes. Though making this work will depend on good execution along with the smart new design. While this experimentation is a good thing, what Target also needs to think about is how it uses some of the learnings from this store to lift the experience across all of its shops.
Target will need to generate a bunch of free publicity to get customers into the store; many people have abandoned the brand altogether.
Press can go both ways. NYC may turn out great. But is there a point where rest of the USA gets tired of NYC locations always getting the star treatment? (Macys 34th St gloating for many years, and Nordstrom bragged about amt of $ spent).
Target has stores in all 50 states, with states like Florida (118 stores) and Illinois (94) having more than New York (90).
THIS is what shoppers expect from Target, not gondolas and apparel racks packed sky high with product. Or worse, on the floor. This concept store provides the Tarjay experience that people once talked about. I am glad to see it is back, even if it’s only one location in NYC.
There are samplings of boutique fixturing in many of the updated Target stores I have visited, so there is hope that this concept will be happen in more locations in 2026.
In the wake of Target’s unimpressive Q3 earnings report (and Walmart’s radiating confidence and raised Q4 guidance), this feels like a major distraction and another hype-y comfort-zone play. Curated boutiques in SoHo won’t fill the gaping hole Ulta will leave in hundreds of stores in a critical category in about 7 months. Time flies…
Well Target can’t exactly stick with Status Quo. Either it’s extremely well researched and tested, so Target should double down and execute like crazy, or they should get 3 or 4 more experiments and innovations into the mix and keep more than one new alternative in play.
It’s a swell space, but unless they do it in every store, what do they gain? OTC it raises expectations… but doesn’t meet them.
I love the idea. Now lets talk about the scalable version, the version that will bring this kind of energy and buzz to hundreds of stores. The version that can be both scalable and localize-able. Remember STORY? Remember STORY at Macy’s? STORY as a curated-for-Manhattan boutique was amazing. STORY as executed in Macy’s branches was not amazing. A flagship boutique curated for a specific location and customer worked great. It turned out to be reeeaaalllyyy difficult to scale. Same concept here. It’s a great start. Now comes the hard part.
It’s refreshing to see Target’s potential. SoHo works because it’s a single showcase receiving exceptional focus. Replicating boutique standards across 50 urban stores requires exactly what Target has been cutting: store labor, merchandising expertise, execution discipline. Does leadership understand that ‘design-driven’ demands operational investment, not the cost reduction that undermines execution fundamentals?
Test and innovate. Key elements of any successful retail experience…never forget that entertainment should be a requirement, and this appears to fit the bill.
Target’s SoHo concept is an intriguing example of the company’s willingness to innovate and experiment with new retail formats, positioning itself as more than a traditional big-box retailer by leaning into curation, design, and experiential discovery. The activation’s curated zones — from “The Drop’s” rotating seasonal styles to influencer-led edits and beauty showcases — reflect a thoughtful effort to tap into urban trend culture and create social-native, buzz-worthy moments that could energize brand perception.
That said, while I respect and appreciate Target’s commitment to pushing boundaries and testing fresh concepts, the broader question for expansion isn’t just can SoHo differentiate but whether it aligns with the foundational discipline of retail execution that ultimately drives sustainable performance. Target’s core competitive advantages historically have been strong private brands, compelling everyday fashion and home assortments, and operational fundamentals like in-stock availability and crisp merchandising. These are the drivers of repeat traffic and profitability — and the areas where execution challenges have surfaced in recent quarters. A boutique, trend-forward experience can certainly elevate perception and attract new guests, but unless the flagship assortment and tactical execution across the broader fleet are rock-solid, upscale urban concepts alone won’t materially shift the company’s overall trajectory.
In evaluating SoHo’s potential for expansion, I’d rate the concept as strategically promising but operationally contingent. Its ability to inform broader store refreshes and reinforce design credibility is valuable; yet, the real litmus for success will be how effectively Target leverages learnings from SoHo to strengthen its everyday in-stock performance, sharpen core merchandising, and deepen assortment relevance in key categories like Fashion, Home, and its private brands, where it has traditionally resonated with guests. Integration of these fundamentals with the spirit of innovation will determine whether SoHo becomes a scalable differentiator or remains a compelling but isolated showcase.
Boutique retailing is a neat concept for Target in specific contexts. A concept like SoHo makes sense in dense, trend-driven markets where discovery and social sharing drive traffic. This works best as a localized destination built around novelty and rotation, not as a template for the broader store base.
If Instagram were a place: This concept will appeal to NYU students in the neighborhood, who may have their parents’ spending power behind them, to buy quick “pick-me-ups” after class or between study breaks. The influencer-inspired, rotating merchandise will keep them coming back.
re: “At the back of the first floor is the “Broadway Beauty Bar,” which is designed for selfies and social media posts.”
Do you see that (as in photo) working for beauty which is very tactile?
High shelves, and limited trial. (vs Sephora style, which is all about the consumer).
Is designing for press/social/photo op (lifespan 10 minutes), the same as a shopper experience where they decide on product and buy?
Target’s sensational SoHo concept reinvigorates the retailer’s elevated store experience with color, cheer and style. This bold vision will differentiate Target from rivals as value shopping soars across demographics and income levels.
This is a high upside push for Target, in establishing more of a visual presence to its leadership in brands. As a retail discount store, this helps differentiate Target from its competition. Some keys to success ahead will be staying more community driven or geographically oriented with its boutique fashion and design concepts.
Experimentation and generating hype is needed for this holiday season for Target for the press. That’s only the first step, the key to return Target to its fomer position is scalable innovation and better store experiences across the board, whether it is store refresh or better collab offerings with hot designers