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

WWDMilestonesSECTION II

ThE FaShION KIM FRIDAY

ThrOugh ThE yEarS CABIRIA ROSADO; STYLED BY BY TIMOTHY PRIANO; MAKEUP

Merona’s cotton sweater and watch BY ARTISTS

AT and Mossimo’s jeggings. Target hat and ballet flats. TRESEMME

FOR BullSEyE ThE TErrIEr BENJAMIN THIGPEN HAIR BY MODELS; For a halF-century, the mass merchant has had its customers seeing red.

PRICE/TRUMP GEORGE CHINSEE; MODEL: CHLOE Target at 50 PHOTO BY

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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 unveiled 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 produce, 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, executive vice president of property development 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, surprising 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 accessories 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 limited-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}

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{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. with a $1 million updated to its current incarnation. this month.” The app gives latest round in the price endowment to carry out shoppers rewards for walk- wars. According to charitable efforts. By 1946, 1969: Dayton Corp. teams up ing into a Target or visiting Deutsche Bank’s pric- it establishes a benchmark with J.L. Hudson Co. of Detroit a certain area of the store. ing study, “Wal-Mart of giving 5 percent of pretax to form the Dayton-Hudson “In terms of technology maintained its price profits to the community. It is Corp. It becomes one of the 15 and where we’re innovat- leadership position renamed the Dayton-Hudson largest nonfood retailers in the ing, there’s our digital with the spread Foundation in 1969 and the nation. Target’s first distribution home catalog,” Tesija con- widening sequen- Target Foundation in 2000. center opens in Fridley, Minn. tinued. Moving a bar on tially. Notably, we the page changes the style attribute the increase 1920: When a freight-handlers 1974: Target introduces its of the room. Scrolling one to a higher basket strike halts shipments of goods “planogram” tool to keep way shows a modern room, price at Target. Wal- from New York to Minneapolis, all its stores consistent, while scrolling the other Mart regained the Dayton’s starts using airplanes Target’s first ad with uncluttered in-stock way yields a traditional price advantage from to transport goods across had a version of the merchandise presentations. room. “It’s important to be Target in June follow- the country. After seeing the now-iconic bull’s-eye. cutting-edge but not for the ing the latter holding planes paraded through the 1975: Target becomes the top sake of being cutting-edge. the leadership posi- streets of Minneapolis, customers immediately revenue producer of Dayton-Hudson Corp. We’re tailoring experiences tion for the past two seek to purchase the just-delivered It introduces circulars distributed through that offer solutions for [custom- like-for-like studies. merchandise. This also helps usher in a new Sunday newspapers. ers’] daily lives.” Specifically, prices at merchandise transportation method. Target’s brand promise, Wal-Mart were lower 1977-78: The Dayton family cedes “Expect More. Pay Less,” in- by 19 cents, on aver- 1922: The Dayton Co. creates and operates management responsibilities. By 1983, all troduced in 1994, has outlasted age.” WBAH, the first radio station to be run by the Daytons will have retired from the board, many corporate tag lines. Tesija said, a department store in the Twin Cities. It’s ending 80 years of direct family involvement. “It strikes the right balance for though, that it’s not the most powerful station in the Midwest our guests, in all economic only about pricing. “Even at the time. 1978: DH buys Mervyns, a California- conditions,” Steinhafel said. though the price points may based department store chain. “Our store experience, broad be higher, guests see these 1938: George Draper Dayton dies. His son selection of food and house- products as a huge value equa- George N. Dayton becomes president of 1979: Target surpasses $1 billion in hold essentials, and our low tion. If you look at the past the Dayton Co. annual sales, with 74 stores in 11 states. prices, supported by 5 per- year, while the economy has cent REDcard Rewards and still been giving us some fits 1983: Target enters California. our price-match guarantee, and starts, and guests are drive traffic in any economy.” still concerned about 1984: Robert Ulrich joins Target from He added that Target’s em- budgets, we’ve been Dayton’s. He is named president of Target phasis on fashion, design and able to offer Missoni for Stores in 1984 and becomes chairman and newness attracts customers. A look from Merona. Target and Jason Wu for chief executive officer of the division in 1987. “The economy is recover- Target. Those have been Ulrich is named chairman and ceo of the ing slowly and unevenly, and we expect two of our of best launches yet.” corporation in 1994. Under his leadership, that to continue,” the executive said. The Shops concept launched in Target nearly triples its sales and U.S. store “As always, we’re focused on serving May with five shops: The Candy Store presence, increases its net earnings nearly our guests better, saving them time of San Francisco, Cos Bar cosmetics ninefold and becomes one of the most and money, and delivering a superior shop of Aspen, Colo., Boston’s Polka recognized brands in retail. Ulrich retires in shopping experience. This disciplined Dog Bakery’s dog accessories, Warren, That was then: Target’s first store 2008, with Target’s sales at $63 billion. focus on our guests helped us imple- Conn.-based Privet House’s home ac- opened in 1962. ment and develop winning strategies cessories and Miami boutique The 1988: Target becomes the first mass during the recession — including our Webster’s apparel, footwear and ac- 1950: After George N. Dayton dies, his merchant to use UPC scanning at all its expansive full-store remodel program cessories. The Shops’ products are in son, Donald C. Dayton, becomes president. stores and distribution centers, enhancing and the REDcard Rewards — and will {Continued on page 6} Eventually, all of the founder’s grandsons inventory control and cutting checkout time. — Wallace, George 2nd, Kenneth, Donald, The company also enters the Bruce and Douglas — join the company in Pacific Northwest. leadership posts. 1989: Target is the lead sponsor of the 1953: Dayton’s launches a service now known International Trans-Antarctica Expedition, as Target Commercial Interiors that provides in which representatives from six countries furnishings and interior environments for traverse the continent for educational purposes. businesses and public institutions. The retailer opens 30 stores in six Southeast states — Florida, Kentucky, Tennessee, 1954: The first branch opens outside of Georgia and North and South Carolina — Minneapolis, in Rochester, Minn. Expansion and now stretches from coast to coast. to other suburban malls in the Twin Cities metro area continues through the Fifties and 1990: DH buys Chicago’s legendary beyond. Dayton’s develops a number of these Marshall Field’s department store. early malls, including the Southdale Center Target unveils its Target Greatland store in Edina, Minn., which opened in 1956 and concept in Apple Valley, Minn. It’s 50 percent is the oldest fully enclosed mall in the U.S. larger than a standard Target with enhanced technologies, wider aisles and food. 1960: Dayton’s begins to develop the Target store concept to appeal to value- 1993: Target expands to the Chicago metro oriented shoppers. Lollipops from The Candy Store at The Shops at Target. {Continued on page 6} 5

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WWDMILESTONES {Continued from page 4} 2006: The retailer’s Go International area, opening 11 stores in one day — the program launches with Luella Bartley. The most openings on one day to that point. limited-edition collection, which is priced Privet House, one of The Shops higher than Target’s typical range, has a at Target, features tabletop. 1995: The first SuperTarget, including a full 90-day run. Designers who follow include discount store and grocery store with fresh Rodarte’s Kate and Laura Mulleavy, Paul & produce, dairy and meat, opens in Omaha. Joe, Proenza Schouler, Patrick Robinson, The company introduces its Archer Farms Behnaz Sarafpour, Erin Fetherston, private label line of premium grocery products. Jovovich-Hawk and Devi Kroell. The retailer launches a comprehensive gift- registry service, among the first of the mass 2006: The company decorates intra-venue retailers to do so. In the first year, 125,000 trains at the Winter Olympic Games in couples sign up with its Club Wedd. Torino, Italy, with its famous Bullseye.

1998: DH purchases Associated Merchandising 2007: Skate-snowboarding star Shaun White Corp. a buying and sourcing company. It would and his brother, Jesse White, create a limited- be renamed Target Sourcing Services in 2004. edition apparel line for Target; in 2010 they would launch sneakers for the retailer. 1999: Target.com goes live, and gift cards make their debut. 2008: Target expands beyond the Makeup artist Sonia Kashuk launches contiguous 48 with two stores in Alaska. As her professional makeup collection part of its charitable endeavors, the Target exclusively with Target. School Library Makeover Program launches Architect Michael Graves becomes the in partnership with the Heart of America first of more than 75 designers to create an Foundation. The retailer’s deal with Isaac exclusive line of products for Target. Mizrahi ends, as the designer takes over Arielle, an English bull terrier, makes the design helm at Liz Claiborne. his first appearance as Bullseye in a TV Target president Gregg Steinhafel commercial, the start of a long career in ads takes over as ceo, succeeding the retiring and jaunts on the red carpet. In 2006, he is Robert Ulrich. {Continued from page 4} Target to assert its design prowess in the second dog to have his likeness displayed stores for six weeks at a time. The the home arena, launched the phrase in Madame Tussauds Wax Museum. 2009: In an initiative that’s separate from second group of Shops, which bows on “Design for all” and attracted other The retailer funds Target House to serve the Go International program, Alexander Sept. 9, features Boston-based Patch designers such as Thomas O’Brien’s as a home-away-from-home for families McQueen becomes the first participant in NYC, Kirna Zabête, Odin and The Vintage Modern bedding and bath of children being treated at St. Jude the new Designer Collaborations program, Curiosity Shoppe. In some cases, store towels, and Cynthia Rowley and Ilene Children’s Research Hospital in Memphis. which aims to bring a series of established owners design apparel or accessories Rosenzweig’s Swell line of home ac- designers to the masses at low prices. Each inspired by items that sold in their cessories. Target recently ended its 2000: Dayton-Hudson Corp is renamed collection will be in about 250 stores for shops. Tesija said they are “curating 13-year relationship with Graves, and Target Corp. Sportswear-maker Mossimo, a limited time. The entire line will also be product. They have their own style Swell is no longer sold. until now a department and specialty store available at target.com. Anna Sui and Jean and aesthetic. They’re not designers The retailer is in the process of re- brand, signs a deal to design and produce Paul Gaultier would follow. by trade, but we have experienced in- naming its Home brand, Threshold, its collections exclusively for Target. house staff that works with them.” which Tesija called the biggest re- 2010: In a partnership with Liberty The Shops effectively replaces Go branding effort in Target’s history. Nate 2001: Target opens its 1,000th store. of London, a limited-edition Target International, which was discontin- Berkus, who unveiled his signature col- It is now in 47 states — Vermont, collection for the first time spans ued late last year, but Tesija said the lection of bedding, bath, lighting, rugs Alaska and Hawaii are the last categories from home and garden to new concept doesn’t preclude Target and window treatments in October, is states without the chain’s apparel for men, women and kids. from working with designers. “One the type of telegenic designer Target presence. doesn’t replace the other,” she said. seeks these days. An author, TV host 2011: Picking 17 participants “We’ll continue to work with design- and producer, Berkus was a design ex- 2002: Pop-up stores begin with from its Go International ers, as well as offer new shop con- pert on “The Oprah Winfrey Show.” the Target Boat at Chelsea Piers program, Target launches a cepts this fall.” Target’s limited-time collections in New York. collection of 34 dresses called A new designer collaboration often get more attention than its own Designer Collective, available could be unveiled “in 2013 or before,” exclusive brands. The retailer has al- 2003: Red Hot Shop on for one month. she said. ways effectively promoted its designer target.com makes its debut. After five years, however, Tesija pointed out that Target collaborations with TV commercials Isaac Mizrahi signs a deal the $100 million-plus Go hasn’t backed away from long-term and print ads, and for Missoni for with the retailer to design International program is partnerships such as Sonia Kashuk, Target, a 25-foot robo doll dressed in the Isaac Mizrahi for Target discontinued. the exclusive makeup brand that of- head-to-toe Missoni. line, stretching the idea of a Revenue for the year is fers a $64.99 luxe brush set and a Target will open its first freestand- designer doing high-end and $69 billion. $34.99 luxe train case. ing store for an owned brand, a C9 unit mass at the same time, since Target’s September partnership Still, it’s a far cry from in San Francisco bowing Oct. 14 in he continued designing a with Missoni draws “online traffic that the “Tar-zhay” days when its own retail space beneath the high-priced collection sold outpaced any Black Friday or Cyber in 2006 Target licensed its second-floor CityTarget. “Certainly, at Bergdorf Goodman. Monday in our history,” said Kathee bull’s-eye logo for a “Target we’ve got many very large owned OshKosh B’Gosh partners Tesija, executive vice president of Couture” line of $330 cash- brands that have their own per- with Target on an exclusive merchandising. The collection features mere sweaters and $3,100 sonality, and that really resonate kids’ line, called Genuine Kids. 400 products from across the store, one-carat diamond neck- with guests,” Tesija said creates “a frenzy,” and most stores sell laces, which were sold at when asked if another 2004: In another sign that the out in a few days, while Target’s Intuition in Los Angeles. brand, such as Merona Web is the future, Target says it Web site crashes under the “The buzz we got or Mossimo, could will discontinue print catalogues. A look from overwhelming demand. from doing some of get the same treat- May Department Stores Missoni for Target. those collaborations ment. “Instead Co. buys Marshall Field’s 2012: The Shops at Target, helped our image,” of renting this for $3.24 billion. Target sells its Mervyns a “street of shops” concept of in-store Tesija said. “It’s im- space to some- division in two separate transactions for a boutiques, is unveiled in May. Five portant to be aspira- body else, total of $1.65 billion in cash — a group inaugural shops are inspired by The Candy tional but be geared we thought of investors led by Sun Capital Partners Store in San Francisco; Aspen, Colo.-based for our guests. There’s it would be Inc. and Cerberus Capital Management Cos Bar cosmetics shop; Boston’s Polka a lot of constituen- great to put LP buys the chain’s retail operations for Dog Bakery’s dog accessories; Warren, cies. Tar-zhay was C9 there.” $1.2 billion in cash, and separately, Target Conn.-based Privet House home products, appropriate for us at At the share- sells $475 million of Mervyns credit card and The Webster, a 20,000-square-foot the time. We even did holders meeting, receivables to GE Consumer Finance. The luxury boutique in Miami that sells luxury a collaboration with Steinhafel touted retailer said Mervyns would operate as an apparel, jewelry and accessories brands. Colette in Paris.” Target’s “stellar independent company. For the second wave of shops, slated for Tesija was refer- owned-brand port- Target introduces a revamped prototype the fall, Kirna Zabête will be the women’s ring to the Proenza folio, which now in- that focuses on “worlds” of related goods. boutique, along with two home concepts Schouler for Target cludes 10 owned or It includes more private and exclusive lines, and a men’s wear store. collection that was sold exclusive brands including Stuff by Hilary Duff cosmetics at Colette in 2007. that generate $1 and a house spa line called Bathery. 2012: As the retailer marks its 50th Michael Graves’ 1999 billion or more in an- anniversary at its annual meeting, ceo stainless-steel tea ket- nual sales each. These 2005: Target exceeds $50 billion in annual Gregg Steinhafel says the company is on tle with the red resin bird brands have become sales. It holds a vertical fashion show in track to reach a goal of $100 billion or whistle was the product that a reason why guests New York, with athletes modeling clothes more in sales and $8 or more in earnings launched thousands of de- shop at Target, not from the retailer’s fall collections as per share by 2017. Next spring, the sign enthusiasts. It allowed just something they they scale down the walls of a nine-story company plans to open stores in Canada, grab while they shop building in Rockefeller Center. its first international foray, adding Merona’s coat, Mossimo’s jeans at Target.” $6 billion in sales. and Target’s scarf and driving cap. SOURCE: TARGET WEB SITE; WWD ARCHIVES We want to congratulate our partners at Target on 50 beautiful years. 8 WWD MONDAY, JUNE 25, 2012

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WWDMILESTONES Right

STYLED BY KIM FRIDAY On PHOTOS BY GEORGE CHINSEE With a stable of successfully owned and exclusive brands, the retailer’s got fall style covered.

ON HIM: Mossimo’s puffer jacket and jeans and Merona’s sweater and shirt. ON HER: Mossimo’s turtleneck and skirt. Target ring. Target bracelet.

Merona’s trench. MALONEY NATALIE ASSISTANT: BOARDMAN; FASHION MADDY CABIRIA ROSADO; PHOTO ASSISTANT: TIMOTHY PRIANO; MAKEUP BY BY ARTISTS

Merona’s blazer, Mossimo’s cardigan, blouse shirt and and belt with Xhilaration’s Mossimo’s jeans. skirt. Target Mossimo bag; earrings; Target ballet ﬂats. Merona belt.

Merona’s dress and BENJAMIN THIGPEN FOR TRESEMME AT Merona’s blazer, Mossimo’s blouse. Target sweater and bag with clutch and bracelets. Mossimo’s hoodie. HAIR BY MODEL MANAGEMENT; Q

Converse One-Star sneakers. PRICE/TRUMP MODELS AND FRASER/ MODELS: CHLOE Consumer Products Division

New 5At ® CongratulationTARGET! ON BEING A TRENDSETTER FOR 50 YEARS!

We look forward to our continued partnership NEW ATin creating an experience that makes ® Beauty a Destination for your Guests.

® ®

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® New At ® 10 WWD MONDAY, JUNE 25, 2012 SECTION II

WWDMILESTONES Expecting the Unexpected Target has built a hip image on top of its promise of value in numerous venues and media outlets. By Amy Wicks

TARGET’S BULL’S-EYE and slogan officer, left Target in October to join “Expect More. Pay Less.” are part of a his- J.C. Penney Co. Inc., from which he re- tory of clever and memorable marketing signed on June 18. Target in January and advertising from the discount retailer. dropped its longtime ad agency Wieden But when it comes to its own ad + Kennedy. The move, according to ex- strategy — with more than $1.5 billion perts, was related to Francis’ departure. spent last year — pinching pennies is Shawn Gensch, senior vice presi- not a goal. dent of marketing, said the company is So what is? always exploring new ways to reach its As one observer put it, while “ ‘Expect customers. “We aim to be a reflection of More. Pay Less.’ is the outgoing message our guests’ lives and try and move with to consumers, the internal one must be the changes that happen over time. I ‘Go big or go home,’ because the compa- think the last two decades really show ny is almost always looking to make a big how the brand can respond. And it’s splash in the media.” often with that iconic music, bright The company has also strived to color and the happiness factor.” raise the hip factor in its communica- In between Target’s big marketing tion with customers — which could be moments, it’s these themes — iconic a point of differentiation from its com- music, bright color and the “happiness petitors in the mass universe — and factor” — that provide a level of con- continually turns up in tinuity to its ad cam- unexpected places. paigns and initiatives. For example, when Its popular “Hello Target sponsored the CBS Good Buy” commer- reality show “Survivor,” cials from 2008, set it didn’t just run commer- against the Beatles cials. It made sure a Target tune, focused on the Images from the 50th anniversary campaign place current product against ads from the Sixties. bull’s-eye parachute fell simple act of gift-giving, on the island where the but it was done with players were camped, dur- bold color and punc- ing every episode. tuated sounds that The brand was the first matched a feeling of joy. to sponsor an ad takeover The brand’s new in The New Yorker. In “Color Changes 2005, Target reportedly Everything” com- paid approximately $1 mercials, set against million to have the run the spirited tune of the weekly. Target got “Alouette,” had a simi- creative, asking artists, in- lar effect. Plain black cluding Ruben Toledo and The Web site. outfits were magically Milton Glaser, to produce turned into colorful illustrations to salute the people of New ensembles. A girl with no makeup was York City. given a split-second makeover. “This Bullseye, the English Bull Terrier sounds simple, but it’s not always an with the red logo around his eye, made easy thing to do,” said Gensch. his appearance in a 1999 TV ad and And then there are ads dedicated went on to star in numerous campaigns to partnerships with designers such and walk the red carpet. In 2006, he as Missoni and Jason Wu, which have became the second dog ever to have taken on a life of their own on the Web. his likeness re-created in Madame In Wu’s commercial, the designer steps Tussauds Wax Museum. out for coffee and a mischievous black A few years ago, Target had somewhat cat puts a few finishing touches on his of a train obsession. It was one of the first collection for Target. brands to wrap New York City subway In the colorful Missoni ads, cars with its popular bull’s-eye. According Margherita Missoni, the eldest grand- to the Village Voice, the ad campaign gen- daughter of the company’s founders, is erated $250,000 in ad revenue over the the star of a Sixties fashion caper that six weeks they ran. The stunt reportedly has her sneaking around the city, com- vertising around that. Sometimes, the will have big ties to social media. took three days to complete, with the aid ing across products and clothing from concept is so exciting that it takes on a Perhaps that is a clue of what to ex- of computer imaging software. In 2006, the collection. When that collection life of its own on the Internet.” pect next. Target has made waves on it wrapped train cars shuttling visitors launched on target.com, it wasn’t long That happened, in a big way, when the Web — with more than 14 million between venues at the Winter Olympic before the site was overwhelmed by Target launched its controversial cam- “likes” on Facebook, 329,000 followers Games in Turin, Italy — exposing the visitors and went down for a few hours. paign featuring a hyper middle-aged on Twitter and an early presence on brand to thousands of people who Customers who had been woman preparing for Black Friday. She Pinterest — but it’s looking to build on had never even heard of the retailer waiting for months to buy the is seen lifting weights and shopping bas- that in the coming months. —without any plans to open stores products blogged, tweeted kets and doing sit-ups. She’s timed her- “It’s where we are having more of a in Europe. But it got plenty of ex- and e-mailed their frustra- self wrapping Christmas presents. The conversation with fans of Target,” said posure on media outlets in the U.S. tion. Gensch acknowledged character now has Facebook pages de- Gensch. And those conversations are and around the world. the “service blip” but said voted to her, and there are copycat spoof about more than the latest discount or And then there was Target’s nothing like that has hap- commercials on YouTube. ad campaign. “We recently had a Twitter “vertical” fashion show, with pened since, and it prob- While she clearly has fans, she’s also chat about corporate responsibility,” he models wearing Isaac Mizrahi for ably won’t happen again. turned off a fair number of customers added. “It was pretty active, and we had Target (the line was discontinued “Our brand plays very that are annoyed by her shtick. Gensch a lot of response to it.” in 2008) rappelling down the face well with fashionistas in didn’t reveal where he falls in the The conversation continues in its of 30 Rockefeller Center. the social space,” said “Christmas Champ” debate. online magazine, A Bullseye View, with But it isn’t all stunts and Gensch. “There was “We are a brand that is constantly daily news updates and features re- showstoppers — much of general excitement evolving, and for us to have a campaign lated to Target products and partner- Target’s budget is spent on a about this product, year after year is surprising,” he said. ships. “It’s a behind-the-scenes look at continuing slate of advertising and we built our ad- “There is a pretty short retail window Target,” said Gensch. “We are an ap- that has evolved over time. and unreasonable degree of excitement proachable, relatable brand and that’s There has been some Bullseye, Target’s that Target understands. She was reflec- reflected on this site.” significant changes spokesdog. tive of the time.” And while its social outreach may not in the advertis- He declined to talk about Target’s be as big as a New York City subway car ing department. upcoming holiday campaign or whether covered in its trademark bull’s-eye, one Michael Francis, the Christmas Champ will return, but can only expect that a big splash in so- chief marketing he said the 2012 holiday season ad push cial media is coming soon. WWD MONDAY, JUNE 25, 2012 11 WWD.COM

Retailer Builds Cachet Cos Bar is part of The Shops at Target. Via Beauty Offerings all Target doors. in select units, Boots dis- By Molly Prior plays are manned by beauty advisers. Beauty also plays a role in the retail- THE lAST THiNG Target wants to be seen er’s latest partnership initiative, Shops at as is another big box, and it’s using beauty Target. The first phase, which launched to telegraph that message loud and clear. May 6, included a bath and body collec- Target’s efforts to transform its ap- tion created with Aspen, Colo.-based proach to beauty got under way in ear- beauty boutique Cos Bar. nest in 1999, when the retailer linked Target also occupies the value space arms with makeup artist Sonia Kashuk with its private label brand, Up & up, appetite and a nimbleness for experi- cleaning and paper products, accounted to create an exclusive, premium cosmet- which spans roughly 800 products in 40 mentation. Despite its size, Target is for 25 percent of sales in 2011. ics range for its stores. The collection has categories, including beauty and per- constantly tinkering with the beauty as- At the WWD Beauty CEo Summit in since grown into a full-scale beauty brand sonal care. sortment, clearing room for a big idea, May, Barra noted, “We just train ourselves — complete with makeup brushes and “This brand offers guests access to expanding it if it works, and quickly mov- and our teams to recognize possibilities cosmetics bags — that occupies a promi- quality, well-designed products at a ing on if it doesn’t. For example, several and turn them into opportunities. We nent position in the beauty department. low price as an equal alternative to the years ago Target created a set of prestige must be comfortable with a permanent it also signaled Target’s commitment to national brand,” said Barra. “on the skin care brands, some with price points state of ambiguity.” doing things a little bit differently than its other hand, prestige quality exclusives well over $100. The test was shelved in 2010, the retailer began rolling out a mass-market competitors. like Sonia Kashuk Beauty, Boots and shortly after its launch. newly designed, more upscale shopping en- “Target and Sonia shared a visionary Umberto Beverly Hills help differentiate “our merchant teams fine-tune our vironment called Destination Beauty, com- idea to continuously deliver the most in- Target’s assortment from competitors. assortment to provide a wide range of plete with custom-designed fixtures, shelf novative, affordable beauty products to Guests have told us they want the brands product that is unique to Target. We lighting, splashy graphics and interactive a wider audience without compromising and products that are most relevant to continually focus on understanding our screens. By year’s end, Target will have out- professional quality,” said José Barra, them, which includes a combination of guests’ preferences to strike the right bal- fitted approximately 1,200 doors with the senior vice president of health care and prestige and national brands.” ance between established and emerging Destination Beauty concept — which is de- beauty at Target. “Sonia’s brand remains Barra said Target eschews a “one size brands,” said Barra. “it is a very fluid and signed to court the cross-channel shopper. a cornerstone of our beauty strategy.” fits all” approach, and looks for ways to cus- dynamic process.” Wendy liebmann, chief executive offi- He noted that Target’s partnerships tomize the assortment. “We also take our Target’s efforts to elevate the mass cer of WSl Strategic retail, said, “Target have since expanded to include its ex- segmentation efforts a step beyond com- market beauty shopping experience has felt very strongly that it needed a differ- clusive Umberto Beverly Hills hair care mon attributes to layer in ‘attitudinal’ seg- have paid off. in its 2011 annual re- ent kind of proposition than its traditional collection and three prestige makeup col- mentation that captures guests’ mind-sets.” port, the company said beauty has be- competition.” She credited Target for cu- lections, namely JK Jemma Kidd, NP Set For instance, Target found that its “style come “one of the top growing catego- rating its offering of mass market beauty and Pixi. And Target continues to build on savvy guests” are willing to trade up and ries.” The report stated that Household brands with more-prestige-positioned its partnership with British retailer Boots, splurge on certain beauty items, he said. Essentials, which includes beauty, per- lines, such as Sonia Kashuk. “it’s the right which has an assortment of products in over the years, Target has shown an sonal care, baby care, pharmacy and proposition for the right audience.”

w25b010(11)b;11.indd 11 6/22/12 6:55 PM 06222012185549 Happy Anniversary Target

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