"Elevate" and "inspire" are words rarely uttered by a big box retailer, but at Target they are in frequent use. WWD provided excellent coverage on the retailer's ever-evolving, but focused Beauty strategy. With sales that outperform the market, Target Beauty did over $2billion with under 1800 stores while Wal-mart did $5billion in 4600 stores, Target has found a sweet spot in growing sales while reducing promotional levels.
Target's guests - customers - know to come into the store and expect new. The frequency of product introductions in the beauty category is well above its rivals. The roll-out of the Beauty Concierge program to help the customer create a beauty solution, across many brands and categories, emphasize how guests have come to shop at Target. It is not the functional quick stop destination it was 10 years ago, Target is now a place of discovery.
Among the various things its attributes to its success, all falling under the "expect more, pay less" mantra, are:
- a head office in the city centre "which makes sure that everyone who works in corporate central sees something other than their own culture on their way to work and at lunchtime, " says retail expert Paco Underhill.
- diversified product offering - variety within price point offering from premium to universal, variety of key item attributes, various levels of brand recognition, innovation and newness, etc
- segmentation strategy that allows program tailoring to specific doors - whether it be premium product or catering to a particular ethnic population
Read the article here.