According to recent sales figures, Target is not doing so hot. Due to excess stock, they’ve cut prices on $200 million worth of stock and they’re looking at $50 million loss this year (ouch). That’s a whole lot of money, and Target has rightly realised that something has to be done.
The company has hired Guy Russo, the mastermind behind the redevelopment of Kmart. It's a smart move because – in case you hadn’t noticed – Kmart is now doing v well.
Russo has outlined a plan of attack for the retailer, including an intention to rival global fashion heavyweights, H&M, UNIQLO and Zara. You can read more about it here.
From what we can tell, there's set to be a little bit of bad but a whole lot of good. We’ve taken one for the team and worked out what these changes will mean.
- There will be more focus on establishing Target as a fashion retailer, meaning yep, the company will be going head to head with global giants Zara and H&M. Russo plans on emulating their models but with one clear difference. Price point.
"The only thing they are not doing right is they are over-priced. If I can clean my model up they will regret making the trip Down Under," he warned.
- All-year basics will see a stock increase. We’re thinking durable, plain tees and everything else we always need but can never find.
- There will be an increased focus on soft home (mmmm bedcovers, mmmm lights, mmmm anything to do with homewares).
- There will be no more annual toy sales. This means no more of those super big, super fun catalogues of toys to peruse (goodbye inner child).
- It will stop selling pet care and luggage. Wait what?
- No more in-store cafes or playgrounds. Russo was super sassy on this point saying, “If a customer wants a playground we’ll suggest they go to the playground.”
Best of all for consumers like us, stock is set to be discounted for the next 12 months. So be ready for some absolute bargainsss