Target Makes More Changes

Here's a copy of an article published in the Pioneer Press. If you are a Target shopper or a local trend watcher, you'll be interested in this. It's nice to see a large retailer shifting their presence in the marketplace to reflect consumer spending, but. . . with all of the changes at Target over the holidays with their coupon policy, coupon availability and pricematching, it makes me wonder if they aren't scrambling to stay in the game. What do you think?


Target takes on Sam's Club, Costco by stocking bulk items, 'finds' in its stores
Upscale discount stores, like their shoppers, turn focus to basics
By Tom Webb twebb@pioneerpress.com
Updated: 01/05/2010 12:46:55 PM CST

Roll out the mega-packages of paper towels.
Target said Monday it's taking a page from club warehouses, temporarily converting a section of its stores into a bulk-packaged oasis, as the Minneapolis-based discounter tries to appeal to cash-strapped consumers.
For the next seven weeks, the seasonal section of all Target stores will stock everyday basics in giant sizes. Most stores also will carry brands not usually found at Target, such as Samsonite luggage and Ralph Lauren polo shirts for children, to replicate the now-you-see-it, now-you-don't "treasure hunt" feel found at some wholesale club stores.
Analysts see this as Target's plan to drive traffic during the post-holiday lull — but they also wonder how far the discount giant intends to take the experiment.
"We know Target has been upping the amount of food they have in the stores," said Patricia Edwards, retail analyst with Storehouse Partners. "So to go to a format, at least for a short-term period, where they have more of a warehouse feel, makes a lot of sense."
On the other hand, margins at wholesale clubs tend to be even thinner than at discount stores, Edwards said. And unlike the club stores, Target won't collect revenue from membership fees.
Target's same-store sales have eroded during the recession, as pinched consumers shied away from its higher-end offerings in favor of basics. So this year, Target is ditching previous post-holiday promotions like Global Bazaar and Home Design and focusing on big bargains.
Target spokeswoman Jana O'Leary said that "The Great Save" promotion is meant partly to "reinforce our commitment to low prices." For instance, the 24-pack of Market Pantry-brand bottled water, usually $3.99, is enlarged to a 35-pack and priced at $3.49.
"We're just driving excitement after the holidays, and delivering something that's relevant," O'Leary said.