Target announced #TargetRunDay, an across-the-board 10% off sale taking place Sunday, Aug. 28 in an effort to boost sales and drive traffic after a disappointing quarterly earnings report. It’s the first time Target has run the same sale in stores and online.
The #TargetRunDay discount applies to all store and online sales, with coupons available in Sunday flyers or via text using the word “Run” to “Target” (827438) for a mobile coupon. Web sales will compute the discount automatically at checkout, the retailer said.
REDcard loyalty members will receive an additional 5% off and free shipping, Target added.
Target was among the few retailers who didn’t get a taste of the industry's mini-rally during the second quarter, posting a disappointing same-store sales decline of 1.1%. That was in line with the company’s guidance of flat to down 2% and in line with analyst expectations for down 1%, but it was also the retailer’s first negative same-store sales measure since the first quarter of 2014.
It may be that Target is hurting a bit more from its recent outspoken stance on allowing transgender people to use the bathrooms and fitting rooms corresponding with their identity than originally thought. But that policy may actually help the retailer in the long run, considering that many people, especially those in Target's demographic, ultimately appreciate retailers that are on the right side of history.
Target's woes also may be pegged to changes it’s making to its supply chain, its stores and its merchandising. The retailer long ago realized it couldn’t compete on price against giants like Wal-Mart and Amazon.
Under CEO Brian Cornell, Target's "cheap chic" look appears to be back, along with new initiatives in home goods, consumer goods and apparel, plus changes to store layout and displays. Still, Target seems to be grappling with how best to tackle e-commerce: The retailer has enjoyed digital sales growth of between 16% and 24% in recent quarters, a good sign, but it also ended its omnichannel curbside pick-up service, presumably due to high costs. Target has also faltered in grocery.
So how should retailers address both e-commerce and brick-and-mortar challenges? For Target, the next step is a 10% off everything sale... at least for a day.