Target New Retail Platform

In today’s retail market, stores have to adapt to the technological boom that is progressing faster and faster each year.  The digital world is something no one can escape and the only choice retailers have is to opt into this new strategy. Target has new digital initiatives that they plan to implement in their stores to continue to grow in their market. In order to sustain loyalty from their customers, they must continue to find better ways to service their customers.

Target-logo

Target is transforming their business model to better fit their customer needs. Their CEO, Gregg Steinhafel states, “There’s a major cultural change in our stores.” [i] One of Target’s new initiatives is to “partner with Net-a-Porter to offer a selected assortment of the Peter Pilotto for Target collection. The Net-a-Porter connection will give Target access to an international fashion-focused customer and raises Target’s style credibility.”[ii] Target has also strengthened their digital platform by adding grocery items available to purchase online and a store pickup service. They are making their services widely available to their audience to give them more options and ways to shop with them. Target also wants to further understand their consumers by investing deeply into technology and digital strategies. They’ve partnered with MSX to create and develop segmentation strategies to better suit their business model with their audience.

As more companies are implementing an omnichannel presence in their business models, they are striving to better their online platforms. They recently invested in a mobile channel app that allows customers to “shop, make lists, get daily deals, manage their prescriptions, and track down birthday gifts without setting foot in store.[iii] While Target still places value on their business in-store, they strive to perfect their online business functions as well. WWD states, “The company recognizes that purchasing in-store will always be important to the luxury consumer, but the insights gained as an online retailer are invaluable from a data standpoint.”[iv] Retailers are able to gain further insight on their consumers through their omnichannel presence just by their purchase history, buying power, needs, wants, and desires. Target invests heavily in their online presence so that they can profit from this growing trend.

target-cartwheel

Target still develops new ways for customers to shop in its stores. They invest in new store layouts that resemble department stores. They have also added mannequins to their apparel departments. With the new additions in their stores, Targets plans to open less stores in the upcoming years. “Kathee Tesija, executive vice president of merchandising and supply chain, said customers are consolidating shopping trips, but buying more. “Lower- and middle-income guests are cutting trips altogether,” she said. To appeal to them, Target is emphasizing the “Pay Less” portion of its brand promise.”[v]

1344008297-c360_2012-07-29-08-37-39_org (1)

Target will continue to strive to better its retail platforms so that it can adjust to the needs of their target audience. The digital world is an ever-evolving force that all brands will soon have to face and indulge in. As omnichannel is key to success for most businesses, we should expect to see more brands investing in this trend. Target is taking the right steps to reach its goals and will constantly grow with their new strategies in place.

 


[i] delson, Sharon. “Target Corp.’s Gregg Steinhafel Touts ‘Cultural Change'” Savannah College of Art and Design. Women’s Wear Daily, 31 Oct. 2013. Web. 01 Nov. 2013.

[ii] delson, Sharon. “Target Corp.’s Gregg Steinhafel Touts ‘Cultural Change'” Savannah College of Art and Design. Women’s Wear Daily, 31 Oct. 2013. Web. 01 Nov. 2013.

[iii] Burnett, Sallie. “Customer Insight Group Loyalty Blog.” Omnichannel Retailing: The Opportunity for Retailers. N.p., 13 Sept. 2013. Web. 01 Nov. 2013.

[iv] Strugatz, Rachel. “Inching Toward an Omnichannel Future.” Savannah College of Art and Design. Women’s Wear Daily, 28 Oct. 2013. Web. 01 Nov. 2013.

[v] delson, Sharon. “Target Corp.’s Gregg Steinhafel Touts ‘Cultural Change'” Savannah College of Art and Design. Women’s Wear Daily, 31 Oct. 2013. Web. 01 Nov. 2013.

Images Cited

Burnett, Sallie. “Customer Insight Group Loyalty Blog.” Omnichannel Retailing: The Opportunity for Retailers. N.p., 13 Sept. 2013. Web. 01 Nov. 2013.

Mudede, Charles. “Target Bodies.” Target Bodies. N.p., 3 Aug. 2012. Web. 01 Nov. 2013.

“Target Corporation.” Wikipedia. Wikimedia Foundation, 31 Oct. 2013. Web. 01 Nov. 2013.

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