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As part of a broader turnaround effort, Target is now zeroing in on improving its brand reputation, investing heavily in reviving its former "Tarzhay" image.
According to Forbes, the retail giant recently hosted a "Financial Community Meeting," one wherein Target CEO Brian Cornell and senior execs outlined a plan to invest between $4 billion and $5 billion in stores, supply chain, and tech to drive — hopefully — $15 billion in sales growth over the next five years.
The plan relies heavily upon the revitalization of its former Tarzhay status as a purveyor of quality retail goods, a status which seems to have dissipated over the past few years.
“Our strategy is all about creating today’s Tarzahy, offering everyday discovery and delight for millions of families and ensuring Target is a consumer favorite for years to come,” Cornell stated.
As Walmart flourishes, attracting the wealthier consumer that used to be a Target mainstay, it remains to be seen if the red-and-white brand can successfully mount a reputational comeback.
"Of all the mass market retailers, our data shows that Target has lost the highest number of shoppers from stores to other channels such as Amazon," GlobalData Managing Director and RetailWire BrainTrust member Neil Saunders wrote on LinkedIn.
From Target to Tarzhay: What's Missing?
With Forbes senior contributor Pamela N. Danziger indicating that "innovative, value-focused products with an upscale vibe have been Tarzhay’s calling card," it seems only logical that the company would redouble its investment on "newness, quality and relevance" concerning its product.
Between its strong private label sales (Good & Gather is set to become the first owned brand to reach $4 billion in value) and high-profile collabs (ranging from a food partnership with James Beard Award-winning chef Ann Kim to a beauty partnership with Ulta), Target appears to have pivoted toward increasing its credentials with cultured consumers.
DTC standout Warby Parker is set to open a handful of shop-in-shops inside of Targets that currently do not have a Target Optical on site, and a returning favorite, Champion, is launching a strategic partnership with Target that features over 500 items bearing the "Tarzhay flourish," Danziger noted.
Target also announced plans to deepen its commitment to omnichannel, harnessing the power of AI to optimize search results and produce highly personalized and relevant product offerings to shoppers. Additionally, the Target Plus marketplace is slated to see the introduction of a swathe of new items from trending partners, including Daily Harvest, Peloton, and Honest Baby Clothing. With one-third of Target customers opening the app while shopping in store, the retailer also indicated it would be enhancing the stores-as-hub model and improving delivery times to satisfy an increasingly tech-savvy consumer.
Target's Reputational Issues Persist, Stymying Efforts To Produce the Desired Tarzhay Rep
One major roadblock standing in the way of a complete revitalization of Target's Tarzhay image is its continuing reputation problem, something Danziger described succinctly as the "elephant in the room."
Following the public backlash over the company's 2023 Pride Month offerings, Target's corporate reputation score plummeted, reaching an all-time low of 60.9 points (out of 100) from a historic high of 76.9 mere months earlier in April. The reverse effect was observed after a pullback from LGBTQ during June's pride month in 2024. Target's handling of other politically sensitive issues, whether by taking a stance or avoiding one, has in general had a harmful impact on the company.
Stephen Hahn of RepTrak, a data-driven corporate reputation advisory firm, was cited by Forbes on the matter.
“You’re frustrating many of your most loyal customers. Target has always been known for good corporate citizenship. But evidence of flip-flopping on key social issues related to both LGBTQ and DEI has coincided with reputational decline," Hahn said.
“What does Target need to do? It needs to be consistent in what it stands for. If it’s going to take a position, it must be all in and not swayed by politics and the movement of public opinion. Be true to your values. If you’re going to stand for a social issue, stand for it, don’t go into it half-heartedly, then back off," he added.