By George Anderson
It is one thing to be chic at cheap prices, but can Target still maintain its brand aura if it starts selling goods for a dollar?
It is going to find out as it test dollar sections merchandised as "The 1 Spot" at the front of 125 stores, reports Reuters.
The timing may be right for the retailer to make a limited move into dollar items as more affluent consumers are seeking bargains for a buck or less.
According to research by WSL Strategic Retail, 62 percent of women responding reported having shopped in a dollar store over a three-month period.
Eric Schiffer, president of 99 Cents Only Stores, said the market for dollar store goods is expanding because, "There is a general awareness that you can get good quality even at a low price."
Moderator's Comment: Does a section merchandising dollar items fit with Target's marketing of its stores?
Martin Bukoll, retail analyst with Northern Trust Co. cautioned in a research report, "Like the seasoning of a fine meal, Target must be careful to use just a pinch of the $1 store items or the corporation is likely to have indigestion."
According to the Reuters report, the store with "The 1 Spot" they visited included food items such as Jiffy Pop popcorn to a four-pack of Eveready batteries.
The retailer has not released any test number results. - George Anderson - Moderator