Connect with us

Hi, what are you looking for?

The American GeniusThe American Genius

Business News

Target’s efforts to re-attract folks is working

(BUSINESS NEWS) Target has been re-evaluating how to draw patrons back to their stores and it seems that its working.

target

Refocusing

Target stores have seen slumped sales in the past year, with analysts blaming online retailers for putting a dent in sales, while the company has blamed a reduced interest in shopping in general.

bar
So when sales took a hit, Target went back to the drawing board and reduced focus on innovation (and disruption) and increased focus on the basics. And it’s working.

On the up

Sales are now exceeding expectations (up 1.3% in same-store sales) to the point that they can slowly revitalize their innovation roadmap in addition to remodeling stores and opening smaller standalone stores.

In an earnings call, the company pointed to the sale of their pharmacies to CVS and the transition had caused “inevitable friction for our guests,” leading to a decline in scrip count and lower sales in general.

Target says these numbers are now improving, however.

Although the average spend amount per visit was down, the company actually saw shoppers visiting stores more frequently, leading to an overall increase in sales.

Advertisement. Scroll to continue reading.

The gameplan

Moving forward, the company will be investing in new brands to showcase, for example, a newly minted new home collection for “the challenges of urban living” meaning people that move frequently, which supports their focus on the smaller format urban stores on college campuses and urban areas.

Target will also be focusing on their competition with online retailers, taking major steps to improve their logistics.

Just this week, they announced their acquisition of Grand Junction, which we liken to the Expedia of shipping and delivery. Not only could this make their rapid shipping competitive with Amazon, they could use the new acquisition to create an assembly and installation program to take on competitors even more strongly.

Back to the basics

Although innovation and disruption have been put on hold, going back to the basics has proven to be a successful recovery method for Target who is looking forward but in measured ways.

#HeavenHasATarget

Advertisement. Scroll to continue reading.

The American Genius is news, insights, tools, and inspiration for business owners and professionals. AG condenses information on technology, business, social media, startups, economics and more, so you don’t have to.

Click to comment

Leave a Reply

Your email address will not be published.

The
American Genius
news neatly in your inbox

Subscribe to our mailing list for news sent straight to your email inbox.

Advertisement

KEEP READING!

Business News

Target originally had their forced retirement age set at 65, but coincidentally sets it back prior to CEO nearing cutoff.

Business News

(BUSINESS NEWS) Target is launching same day delivery - will we save money by nixing impulse buys, or will the convenience make us spend...

Business News

(BUSINESS NEWS) Retailers everywhere are feeling the pressure from Amazon. Yet, Target is taking that pressure and producing more stores.

Business News

(BUSINESS NEWS) Target is fanning the flame trying to keep up with Amazon fire and have acquired a logistics technology firm to help.

The American Genius is a strong news voice in the entrepreneur and tech world, offering meaningful, concise insight into emerging technologies, the digital economy, best practices, and a shifting business culture. We refuse to publish fluff, and our readers rely on us for inspiring action. Copyright © 2005-2022, The American Genius, LLC.