Dive Brief:
- Target will redesign its SoHo store in New York City to focus on style merchandise, such as apparel and beauty, per details emailed to Retail Dive.
- The new store concept will be a rolling launch, with the first phase opening this fall. With the staggered redesign, the location will not be closed to the public during construction.
- The SoHo store currently focuses on selling essentials, such as toiletries and snacks. The mass retailer’s move to make it a style-forward store comes after the company relaunched its @TargetStyle Instagram account during New York Fashion Week earlier this month.
Dive Insight:
Target’s updated SoHo store will focus on the experience of discovering new merchandise — a core component of the retailer’s turnaround strategy.
The mass retailer’s incoming CEO Michael Fiddelke (currently COO) said during an earnings call in August that Target needs to reestablish itself as a merchandising authority.
“We want guests to find a sense of joy from every trip to Target and we must do that more consistently and frequently,” the executive added.
Since then, the company has announced a slew of initiatives with a focus on newness. For the holiday season, Target is doubling its new merchandise offerings compared to the holiday period in 2024. Over half of the new 20,000 products this season will also be exclusive to Target.
Regarding apparel, the retailer earlier this year announced a partnership with sportswear brand Champion, featuring a 500-piece collection that debuted in August.
On Monday, Target announced it would sell a new apparel brand by fashion and beauty influencer Kahlana Barfield Brown, called KBB by Kahlana. The retailer had first worked with the expert as its first partner for the Target private label Future Collective in 2022.
The style push and its contribution to the broader merchandise revamp are meant to help the business’s recent pattern of declining sales. For the second quarter, Target reported a net sales decline of 0.9% year over year to $25.2 billion and a store comp decrease of 3.2%.
