Target Corp. is leaning into global trips by its buyers, an artificial intelligence-powered tool to help discern emerging fashion trends and sharper critiques of its own merchandise to get back to its roots as a seller of attention-grabbing, fashion-forward clothing and home decor at an affordable price, CNBC reports.
Those strategies were detailed in the news service’s wide-ranging interview with incoming CEO Michael Fiddelke and other key executives at Target’s Minneapolis headquarters. During that session, Fiddelke outlined his three key priorities as he prepares to step into the company’s top job in February: regaining Target’s reputation for style and design, providing a more consistent customer experience and using technology to speed along the business.
He said improving Target’s merchandise — which earned it the nickname “Tarzhay” among shoppers — “is a critical first priority for me.” For the holiday quarter, Target is trying to capitalize on fresh merchandise to attract shoppers by adding 20,000 new items in its stores during the fourth quarter, double what the company had a year ago.
Another high-profile effort by Target will be will debut soon in New York City’s SoHo neighborhood. Starting in November, the big-box retailer is turning its neighborhood store there into a new concept that shows off more of its fashion-forward, unique merchandise and carries fewer convenience store staples like toothpaste, shampoo and snacks, Chief Guest Experience Officer Cara Sylvester told CNBC.
Target chose the location for the concept because it sits in an influential global style capital and has higher foot traffic, Sylvester said. She added the store will feel more like a pop-up shop, with Target rotating merchandise monthly and showing off its products — such as fashion-forward clothing and home collaborations — in “bold, iconic displays.”
Turnarounds such as those being attempted by Target typically take time to come to fruition, industry experts note, so it’s likely to be several quarters before the retailer sees any impact from its efforts. But many also believe the retailer is right to shake things up.
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“It’s not like [Target] disappeared, but if you and I were the same and we didn’t change, we would be less relevant in the age of TikTok,” said Oliver Chen, a Senior Equity Research Analyst who covers retail and luxury goods for TD Cowen told CNBC. “You can’t stand still.”
