Target has managed to be a discount retailer that's also cool. The chain has a better reputation than similar retailers like Walmart and Kohl's.
It has become a place where people like to walk around and browse like a modern version of the role malls played over the past few decades. That's not an accident. CEO Brian Cornell has transformed Target (TGT) -) into a destination through careful partnerships and store-within-a-store relationships.
Related: Key Walmart and Kroger supplier files Chapter 11 bankruptcy
Target has found what you might call "Tarjay 2.0" in two ways. First, it has partnered with major brands including Starbucks (SBUX) -), Walt Disney, Apple, and Ulta Beauty for store-within-a-store concepts. These are major traffic drivers — especially Starbucks and Ulta — as people may drop in for a coffee or to buy some makeup and then make a bigger purchase.
The chain's second major innovation has been partnering with famous names and big retail brands, some of which you would not expect to be sold in a value-based department store. This has included permanent deals with Chip and Joanna Gaines Magnolia brand and pop-up sales with Vineyard Vines, and some other surprise names.
Those lines and limited-time collections have created buzz for Target on social media. Some of the Vineyard Vines items sold for more than twice their list price online, and Target's overall strategy around pop-up sales has created some fast-food chain-like mystery around the brand.
Now, Target has a new and unexpected brand partnership that customers will likely buy up very quickly. It's a move that continues to separate the brand from rivals including Walmart, Costco, and Amazon.
Image source: Shutterstock
Target partners with Kendra Scott
Target has partnered with Kendra Scott, a self-described fashion-meets-philanthropy lifestyle brand. The popular brand will launch a new collection at the retailer's stores on Oct. 22.
"The exclusive Kendra Scott at Target collection is bringing the bling big time, with over 200 necklaces, earrings, bracelets, rings, and accessories all featuring Kendra Scott’s much-loved designs, genuine gemstones, 14K gold over brass, and other quality metals. With most of the collection priced at under $40, it’s a new — and more affordable — way for Kendra Scott fans (and fans-to-be) to shop their favorite jewelry brand," Target shared in a press release.
Kendra Scott, who founded the brand carrying her name, believes that Target's values are in line with her company's philanthropic efforts.
“We partnered with Target as they have a strong presence in our local communities, the place that matters the most to us. Together, we’re introducing a quality, style-forward collection and celebrating both brands' shared commitment to our communities," said the CEO.
Not every Target location will stock the Kendra Scott line. The chain's website's "Store Finder" tool will show which stores will offer the collection.
Two key Target executives are retiring
Two members of Target's leadership team are stepping down from their roles in what the company is calling a "retirement." COO John Mulligan will step down as COO in Feb. and remain a strategic advisor to the company for a year after that. In addition, Chief External Engagement Officer Laysha Ward will retire but remain an advisor to the company through April 2024.
Mulligan has been a key figure at the retailer moving up through the ranks since joining the chain as a financial analyst in 1996. He served as CFO for the company from 2012-2015 and was interim CEO in 2014 before Brian Cornell was named CEO. Mulligan became COO in 2015.
"As chief operating officer, he has played a critical role in the successful rollout of Target’s 'stores as hubs' strategy and has been a driving force behind developing and evolving the organization’s fulfillment options, including Order Pickup, Drive Up, and its same-day delivery services," the company shared.
Ward has also been with Target for a very long time.
“First and foremost, I want to express my gratitude. It has been a great privilege to grow alongside the Target brand and team for 32 years, as we’ve expanded from $9 billion in annual revenue and fewer than 500 stores to more than $100 billion and nearly 2,000 stores,” she shared.
