Tom Dougherty, CEO – Stealing Share
17 October 2018
The Target brand takes advantage of an opportunity
The Target brand is planning to create a new toy initiative in stores and online as the retailer enters into the Christmas selling season. Spurred on by the exit of Toys R Us, I think this makes a lot of sense for the retailer.
The Target brand is just one of a number of retailers looking to fill the void left by Toys R Us. Much of the now defunct retailer’s revenue came from the holiday season and shoppers will naturally look to other retailers.
If experience as taught us anything, Amazon (and Apple’s App Store) will take the lion’s share of that business. But that does not mean there won’t be anything left for the likes of Walmart and Target. There is definitely market share up for grabs.
The plan for the Target brand is pretty simple, but effective. It will create a mini Toys R Us inside its stores. The revamped departments will have a variety of enhancements, including more toy aisles, play days for kids and 25,000 “hours of joy” where kids can play with toys and meet “real life” characters.
In addition, the Target brand will be adding 2,500 new and exclusive toys to its lines. If all of that wasn’t enough, Target will release its annual gift catalog with 15% more space dedicated to toys with the goal of driving more in-store and online sales.
“In the long term? The Target brand still lacks meaning. So, even though this is a smart short-term opportunity, it’s not enough to fix Target’s problem.”
But the Target brand still lacks meaning
It was time for Toys R Us to close shop because it was obviously unwilling or unable to change. The Target brand is taking advantage of that market opportunity. As it should.
Now, I don’t believe people will be racing into Target stores in droves to buy toys. But I do think that, for a segment of the population, this revamp by Target will serve its purposes.
At least in the short term.
In the long term? The Target brand still lacks meaning. So, even though this is a smart short-term opportunity, it’s not enough to fix Target’s problem.
Like Toys R Us did, it needs to identify who the Target brand is for and not for. That’s the real share-stealing strategy.
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