By Faye Brookman, special to GMDC
Target likes to debut new stores in large blocks and often the units sport fresh looks and even fresher merchandising concepts for the ever-evolving mass merchant.
That's exactly what took place in a 42-store opening blitz at the end of July covering markets from central New Jersey to St. Paul, MN. And the fresh new merchandising concepts are focused on categories that are the core of supermarket and drug store offerings: beauty, food, pet and seasonal.
The expanded merchandising in these categories is likely to ratchet up competitive pressures for all retailers engaged in these product areas.
One of the new stores, located in South Brunswick, N.J., illustrates a new focus on beauty. The department has been moved closer to the entrance than in older layouts. The exclusive Sonia Kashuk label continues to get A-Plus footage in Target, but the chain is also giving a big boost to British import Boots.
One SKU, Boots No7 Restore & Renew, has just been fully restocked in Target after selling through so quickly the company couldn't produce enough inventory. The item received a flurry of press after a BBC documentary found it to be one of the best skin care items available on the market.
Personal care is the next category after cosmetics, and Target uses categories such as hair care and hair color as segues into toiletries. The pharmacy is located at the rear of the over-the-counter area. Target heavily promotes its unique color-coded bottle system launched last year where family members can have different colors to identify their prescriptions.
The next major focal point is food, and this department is fully stocked with refrigerated products such as dairy and soda. There are also snacks, cookies and a great number of packaged food items. There is no grocery store in this particular location and Target makes use of that to offer its expanded grocery set.
Pet is another department Target moves around a great deal, and in the South Brunswick unit, it is near the front. The homegrown Boots & Barkley brand is the main focus and - in true Target fashion - even dog beds and bowls have a fashion twist.
It was back-to-school season for the opening and blackboard signs helped direct shoppers to the rear of the store where there were mountains of school supplies and attractive graphics of kids.
Target continues to improve the decor of its stores, which is coming closer to the hipness of its advertising and merchandise. Advertisements sent to area homes featured clever lift tabs to reveal mostly Target house brands. For example, one tab said "hello gorgeous" and lifting it uncovered a Sonia Kashuk lip palette. There was also a $5.00 coupon good for the grand opening period of the store.
Target's formula is clicking with consumers. Target Corporation announced that four-week sales ended August 4, 2007 increased 10.8 percent. That's a good definition of competitive pressure.
Discussion Questions: Drug stores in particular have
done well recently in developing shopping trips and building transactions through
an emphasis on health & wellness. What does Target's new initiative in core
drug and supermarket categories mean for chain drug stores and grocery stores?
How should they respond, particularly in the area of beauty and personal care?