Dive Brief:
- Target is kicking off the holidays with 20,000 new products (double the amount in 2024), with over half of them exclusive to the mass retailer, per a Tuesday press release. Additionally, the company’s Target Circle Week deals event will return from Oct. 5 through Oct. 11, with members of the Target Circle 360 paid program getting access 24 hours in advance.
- The company is also expanding its next-day delivery service to the 35 top metro areas in the U.S. by the end of October, the company said. The new metro areas will include Orlando, Florida; St. Louis; Charlotte, North Carolina; and more.
- While Target didn’t provide a specific number for new seasonal hires, the retailer stressed the value of its team and the existing “flexible” on-demand workforce of 43,000 employees who can pick up additional shifts as needed. Target said interested applicants can apply for seasonal roles in both stores and supply chain facilities starting Sept. 24 through its dedicated web page.
Dive Insight:
Building on a core tenet of its turnaround strategy, Target is continuing its emphasis on new merchandise as it heads into the holiday season.
“Newness and freshness is absolutely critical,” Target Vice President of Experiential Store Operations Michael Scrafford told Retail Dive during a live event last week. “I'd also say we want to meet our guests where they are, when they are, and how they want to shop. And that looks different for every guest.”
With the retailer's expanded next-day delivery service and new products, Target is actively working toward those goals.
Target said in its release that thousands of its seasonal gifts are priced starting at $5. After Target Circle Week ends, the company will debut hundreds of weekly deals starting Nov. 1 and have a “Deal of the Day” with some items up to 50% off. The focus on deals comes as consumers seek out value amid macroeconomic pressures, as evidenced by a Deloitte survey in July and the increase in middle- and higher-income shoppers at discount retailers.
The retailer certainly needs a win this season, as its sales have declined lately — an unwanted pattern that its incoming CEO hopes to fix.
Target in August announced COO Michael Fiddelke (a longtime company veteran) will take over the CEO position from Brian Cornell in February. His approach to redirecting the business trajectory became evident on a second quarter earnings call last month.
“First, we must reestablish our merchandising authority in a way that is distinctly Target,” Fiddelke told analysts. “Second, we’re a retailer that believes that an elevated experience is every bit as important as product. We want guests to find a sense of joy from every trip to Target and we must do that more consistently and frequently. And third, we must more fully use technology to improve our speed, guest experience and efficiency throughout the business.”
For its latest quarter, Target’s net sales dropped 0.9% year over year to $25.2 billion, while net earnings declined 21.5% to $935 million. Fiddelke noted on the call with analysts that such results demonstrate that Target is not realizing its full potential.
