Image Courtesy of Target
November 5, 2024
Will Target’s Holiday Shopping Experience Help Improve Sales?
Target’s holiday strategy this season is all about transforming the typical shopping trip into a magical, immersive experience designed to delight and inspire customers. Drawing on nostalgic elements like iconic red-and-white peppermint swirls, the retailer is turning its stores into whimsical wonderlands. Shoppers can explore themed areas while being greeted by characters like Berry the Bear. These immersive touches are complemented by easy-to-shop categories for everything from holiday décor to last-minute gifts.
The holiday shopping experience extends to Target’s digital presence as well, with a visually appealing shopping journey that mirrors the in-store experience. Peppermint swirls and falling snowflakes guide online shoppers through curated gift ideas, special promotions, and even a digital Holiday Wish List.
Additionally, Target announced the plan to host exclusive in-store events, including Target Wonderland in New York, Atlanta, and Dallas, which will “feature shoppable and shareable experiences with brands like Hasbro, Marvel, LEGO and L’Oreal.”
The main features of Target’s holiday experience include:
- Peppermint swirl theme: Featured across stores and online for a festive atmosphere.
- Themed in-store areas: Merry Cherry Chalet (gifts), Candy Cane Corner (seasonal treats), and Trim the Tree Lot (holiday décor).
- Berry the Bear: 9-foot version in select stores, with plush toys and matching pajamas available for those who want to bring him home.
- Target Wonderland events: Pop-up experiences in NYC, Atlanta, and Dallas with interactive displays.
- Enhanced digital shopping: Personalized wish lists, gift guides, and festive features.
- Happier Holidays campaign: Holiday ads set to “Pure Imagination.”
- Convenient shopping: Drive Up, Order Pickup, free two-day shipping, and Target Circle member perks.
Target is not the only retailer going all out for the holidays. For the first time ever, Spirit Halloween is expanding into the holiday season with the launch of Spirit Christmas stores. To attract holiday shoppers, Spirit Christmas stores will feature live Santa Claus photo opportunities, where visitors can reserve a spot to skip the line and receive a free digital photo.
However, this holiday season might be challenging for physical retailers.
Recently, Celigo released its second annual 2024 Holiday Shopping Trends Report, which predicts that holiday shoppers in 2024 want to avoid in-store shopping.
Celigo revealed that for 2024, most consumers are moving away from in-store shopping in favor of faster, mobile-centric experiences, with the majority of shoppers planning to complete holiday shopping in less than six hours. The survey of 4,000 global shoppers in North America and the UK found that over half planned to start their holiday shopping in October — a shift from last year where almost 50% began in September — and the majority expect to spend less than $1,000 on gifts.
“With economic pressures and inflation concerns still top of mind, consumers are dedicating far less time, money and resources to holiday shopping,” said Mark Simon, Celigo’s vice president of strategy, in a press release. “There is a significant shift toward last-minute online purchases and a growing emphasis on securing the best deals at the right time, which means that retailers must adapt to these evolving behaviors to meet the demands of today’s digitally savvy shoppers.”
Furthermore, younger shoppers, especially Gen Zers, are driving a shift to mobile and social media platforms like TikTok and Instagram for gift buying. As a result, many consumers will shop online for convenience, product availability, and fast delivery. According to Celigo, “67% of 18-to-24-year-olds and 65% of 25-to-35-year-olds will use their cell phones for holiday shopping, while nearly half of all consumers will shop for gifts on social media platforms like TikTok, Instagram and Facebook.”
Insider also compiled some feedback from industry experts and predicted key takeaways about the 2024 holiday shopping season:
- Shorter holiday shopping season: The 2024 holiday season between Thanksgiving and Christmas is just 27 days long, which is shorter than usual and may lead to delivery issues and backlogs.
- Tighter budgets: Consumers are cutting back on purchases, seeking better prices or fewer items.
- Omnichannel shopping: Consumers continue to shop across multiple platforms, making it essential for businesses to be present everywhere.
- Increased mobile shopping: Mobile shopping continues to rise, with 81% of consumers planning to use mobile apps during BFCM, according to Tapcart.
Discussion Questions
How might Target’s blend of in-store experiences and personalized digital shopping impact its holiday sales and customer loyalty this season?
With mobile and social media shopping on the rise, how likely is it that Target’s digital features will drive a boost in holiday sales, particularly among younger consumers?
How could Target’s focus on immersive, themed holiday events and exclusive in-store experiences influence foot traffic and sales in a year when many shoppers are prioritizing online convenience?
Poll
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Strong merchandising and great displays can most certainly help to drive up sales. And Target seems to have pulled out all of the stops this year, so I expect its fantastical forest theme will help. That said, a lot will also depend on good operational control meaning things like in-stocks (something Target isn’t great on), sharp price points, and the right mix of products are all critical. Consumers remain constrained this holiday, so shopping will be disciplined and focused and there will be a patchwork of retail winners and losers.
Not sure I buy that most consumers will shop during the October-November timeframe, nor am I buying that online will overpower brick and mortar. December is a busy month; don’t count it out.
But I am all about the in-store experience and I love that Target is making holiday shopping magical and immersive.
There is a reason shoppers are drawn to Macy’s flagship stores like Herald Square in New York and State Street in Chicago. These stores scream Christmas. You’re not going to get that online. And you are not going to get it at Target unless you are in NYC or Dallas.
That’s so unfair to shoppers who do not live in the cities retailers choose to bless with upgrades and special events year after year. You want to make a splash? Spread the holiday love.
I agree with you. The idea that online spending will beat bricks and mortar spending is idiotic. It absolutely will not!
There is a reason shoppers are drawn to Macy’s flagship store
s likeHerald Square in New Yorkandor Marshall Field, State Street in Chicago : FTFY!But yeah, what’s those boring animated window displays of yore when you can have “Peppermint swirl”? 🙁
Yeah, I lost my mind for a minute there. #marshallfields4evah
Yes — Marshall Fields FOREVER !!!!!!!!!!!!!!!!!
This gives us something to look forward to, and it will be interesting to see how well it helps “move the revenue needle”. Kudos to Target leadership for taking the risk and spending the money necessary to make this happen!
“How might Target’s blend of in-store experiences and personalized digital shopping impact its holiday sales and customer loyalty this season?”
The integration of online and offline, plus immersive/personalized experiences, will lift Target’s holiday sales and set the foundation for a year-round model that will lead them back to the highs of 2018-2023, when their bold innovations set them apart from other legacy retailers.
I’m excited about how Target creates experiences that appeal to its customers’ emotions and interests. But the experience is more than that. Convenience is important. For example, how easy is it to shop at a Target during the holidays? As more consumers turn to eCommerce websites (including Target’s), Target must ensure the in-store experience is as easy and hassle-free as possible. To start with, that means keeping the checkout experience short. If the last thing a customer remembers after the incredible experience Target provides throughout the store is a longer-than-acceptable wait to check out, they risk losing a customer’s future business.
If you want more store visits, make the store experience unique and worth visiting. Target is executing on this basic concept of retail.
While Target’s focus on immersive, themed holiday events and in-store experiences will help draw extra customer attention, it won’t be what converts to sales. These tactics can help get customers in the door, but ultimately, they stay because of a quality shopping experience – easy-to-find products, affordable prices, quality deals and flexible payment options.
Target will need to go beyond the novelty of these in-store experiences and ensure that at the end of the day, they’re delivering on these key factors of a good retail experience first. That extends to online and mobile shopping as well. A well-designed website is only as good as the product discovery and checkout experience. Are the gift guides easy to navigate? Are search results relevant and in stock? Can shoppers choose how they receive their product, such as shipping or BOPIS? To truly succeed this holiday season, Target will need to deliver on both holiday spirit and a convenient shopping experience.
Target’s in-store experiences could make the holiday shopping season feel more special, but I doubt it’ll contribute much in growing the sales. See, most shoppers today, especially younger ones, are looking for quick and easy online options. With inflation in mind, they’re prioritizing deals over experiences.
Target’s digital features could draw more mobile-savvy customers, but still, I think the appeal of themed events and displays will only work if it’s paired with lucrative online offers and competitive prices. The reality is that in today’s time, convenience and savings are king.
For Target the key is going to be holiday merchandising – how they use these initiatives to really inspire targeted gifting and holiday impulse purchases. The Berry the Bear animation seems linked to the merchandise but unless the rest of the thematic displays and gifting is linked to merchandise that really inspires then the rest will likely fall short. There IS tremendous potential for linking the omnichannel experience with data to really turbocharge personalized product discovery, and especially to curate gift recommendations though, so I look forward to tracking that!