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For a Half-Century, the Mass Merchant Has Had Its Customers Seeing Red

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For a Half-Century, the Mass Merchant Has Had Its Customers Seeing Red WWDMilestonesSECTION II ThE FaShION FRIDAY KIM BY STYLED ThrOugh ThE yEarS ROSADO; CABIRIA BY MAKEUP PRIANO; TIMOTHY BY Merona’s cotton sweater and watch ARTISTS AT and Mossimo’s jeggings. Target hat and ballet flats. TRESEMME FOR BullSEyE ThE TErrIEr THIGPEN BENJAMIN BY HAIR MODELS; For a halF-century, the mass merchant has had its customers seeing red. PRICE/TRUMP CHLOE MODEL: CHINSEE; GEORGE Target at 50 BY PHOTO w25b001a;6.indd 1 6/22/12 7:02 PM 06222012190251 2 WWD MONDAY, JUNE 25, 2012 SECTION II WWD.COM WWDMILESTONES York, Philadelphia, the Washington- A rendering of the Baltimore corridor and Miami. Seattle CityTarget. Target isn’t the only mass retailer opening smaller stores. Wal-Mart un- veiled the first two Wal-Mart Express test stores in Northwest Arkansas last June. The Express stores average 15,000 square feet and offer groceries and general merchandise, fresh pro- duce, dairy and meat, dry goods, con- sumables, health and beauty aids and over-the-counter drugs. “We know that our urban guests are driving to nearby Target stores to shop, and CityTarget brings the store to them,” said John Griffith, execu- tive vice president of property devel- opment at Target. “Target flexes [its] store designs into unique spaces and is building stores that fit into the aesthet- ics of individual communities. Each CityTarget location is unique, and our store design team has created fun, sur- prising elements to appeal to our hip and chic urban guest.” “We’ll tailor our assortments,” Tesija added. “We’ll have food in all locations in varying amounts. We’ll have a full range of apparel and acces- sories and will be bringing our design partnerships to CityTarget. Our urban guest is very trend-forward and loves high quality. Apparel, home and beauty will do very well.” Target has been cautious in expand- Aiming High ing beyond U.S. borders. The retailer last year agreed to purchase from Zellers the leasehold interests in up to Hitting the half-century mark, Target’s strategy remains community-focused, 220 sites in Canada. “Our focus at the moment is con- with a high price-to-value equation. By Sharon Edelson verting 125 to 135 Zellers sites next March and April in Ontario,” a spokeswoman said. “We are looking THERE WILL BE NO MIDLIFE CRISIS for Target. Gregg John The retailer, which turned 50 in Steinhafel Griffith May, has no use for proverbial sports cars or casual flings. It’s focused on the future and standing on solid financial ground — but not standing still. The Minneapolis-based mass re- ·· tailer has made a habit of catching shoppers off guard, lest they become too complacent. Just when the limit- ed-time designer collaborations of Go International were hitting their stride, Target Corp. introduced a new platform for collaborations, The Shops at Target. “We thrive on change,” said Kathryn A. Tesija, executive vice president of merchandising. “The most important thing is to make sure we’re very fo- Kathryn Tesija cused on our guests. It’s hard to be in retail if you don’t love change. We’re always looking for the next best thing.” at other locations beyond Zellers. In Target’s 2011 revenue was $69 bil- the next two years, we could have 200 lion, and the company is on plan to New initiatives like our CityTarget store stores in Canada.” reach its goal of $100 billion or more Target is building three distribu- in sales and at least $8 in earnings per format for urban locations, our expansion tion centers across Canada and work- share by 2017. The retailer achieved a ing closely with the Canadian vendor 5.3 percent comparable-store sales in- into Canada and our focus on multichannel community to develop the foundation crease for the first quarter, the largest for the business, she added. since the third quarter of 2005. Those “Expanding beyond our northern figures were cited by Gregg Steinhafel, are just some of the ways in which we’re border represents tremendous growth chief executive officer, at Target’s an- opportunity,” Steinhafel said. “We ex- nual meeting on June 13. positioning Target for future growth. pect Target Canada to deliver $6 bil- “Our profitable performance fuels lion or more in sales and $0.80 or more job growth and economic activity in — GREGG STEINHAFEL, TARGET CORP. in earnings per share by 2017.” thousands of local communities,” Wal-Mart, which has been far more Steinhafel said at the meeting. “It team has the insight, ingenuity and Ranging in size from 80,000 square aggressive overseas, has stores in 27 drives sustained shareholder value passion to drive our next 50 years of feet to 100,000 square feet, CityTarget countries, but its complex internation- and makes innovation and continu- guest connection and growth. New stores are a growth vehicle for a coun- al business has not been without risks; ous improvement possible through our initiatives like our CityTarget store try with little suburban or exurban the retailer is at the center of a scan- worldwide operations, and it enables format for urban locations, our ex- land left to build on. Full-size stores dal involving alleged bribery in Mexico us to give more than $3 million a week pansion into Canada and our focus on are between 128,000 square feet and and is extending its inquiry to other to support and strengthen our commu- multichannel are just some of the ways 135,000 square feet. Small-format parts of the world. nities through our unwavering 5 per- in which we’re positioning Target for stores will open in Chicago and Seattle On the cyber front, Target has been cent giving commitment.” future growth. If we continue to listen in July, followed by San Francisco in criticized for the less-than-seamless de- Steinhafel was referring to Target’s closely and respond to the changing October. Three CityTarget units are velopment of its multichannel strategy. policy, since 1946, of donating 5 per- needs of our guests, and if we remain slated to open in Los ··Angeles, in July, The retailer’s Web site crashed during cent of its income to communities. as innovative, adaptable and disci- October and 2013, when one will also the launch of Missoni for Target last “We see endless opportunities in plined as I believe we will, then Target open in Portland, Ore. Target is ex- September, unable to handle the demand. today’s fast-changing retail world,” will really shine in the months and ploring 10 more major markets, in- Tesija has said this won’t happen again. Steinhafel told WWD. “Today’s Target years ahead.” cluding Minneapolis, Boston, New {Continued on page 4} 4 WWD MONDAY, JUNE 25, 2012 SECTION II WWD.COM WWDMILESTONES {Continued from page 2} help us continue to anticipate our A MOVING TARGET “We were disappointed with some guests’ needs.” issues we had last fall,” she added. Target emphasizes “Expect More” Target, the store, is marking its 50th anniversary in business, but “We quickly got our site back up and during sound economic times, and Target, the corporation, traces its roots to 1902. Here are some running. It was stable all fall.” highlights “Pay Less” when times are milestones along Target’s odyssey. COMPILED BY DIANNE M. POGODA The Internet, social media and mo- tough, as in 2008 when its TV cam- bile are “redefining our business and paign, “A new day, new ways to save,” 1902: Banker and real estate investor 1962: Target opens on May 1 in Roseville, every important part of who we are addressed shoppers’ budget concerns. George Draper Dayton, a native New Minn., promoting itself as combining today and who we’ll be in the future,” “In the last several years, our guests Yorker, heads to the Midwest and settles department store features like fashion, Tesija said. Calling Target’s consumers have shifted their mind-set a bit and in Minneapolis, which he feels has the quality and service with the low prices of a “very digitally savvy,” she noted they what you’ve seen is their reaction to best growth opportunities. He becomes a discounter. Three more Targets would open are watching T V, working and shopping that,” said Tesija. “We still believe in partner in the Goodfellows Dry Goods Co. in the state by yearend. on smartphones. “We have to cre- both sides of the brand promise. department store. The following year, he ate differentiated experiences in We’re aspirational, but not dis- becomes sole owner and renames it Dayton 1966: The first Target outside Minnesota stores, online or in social media.” connected from our guests’ Dry Goods Co., today known as Target Corp. opens in metropolitan Denver. To critics who say that Target lives. Even through the reces- isn’t as advanced digitally sion, we introduced, on the 1916: The Dayton Co., as it is now known, 1967: Dayton’s goes public with five as Wal-Mart, with its Silicon ‘Expect More’ side, Liberty becomes a founding member of the Retail autonomous divisions: Dayton’s department Valley-based @Wal-MartLabs of London for Target, [a lim- Research Association, which would later stores, Target Stores, B. Dalton Bookseller, research and development ited-time collection] with be know as Associated Dayton Jewelers and Dayton unit, Tesija responded, “We 400 items. We were able Merchandising Corp. Development Co. It begins have scannable coupons, our to go into items with national expansion. iPhone app won awards lower price points, such 1918: George Dayton three years in a row and as stationery.” establishes The Dayton 1968: The Bullseye logo is we rolled out Shopkick Still, Target lost the Foundation.
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