Target Recap 2022: Major Milestones
At A Glance
- The pandemic drove consumers to reassess their priorities and needs
- As a result, grocers, too, saw themselves adapting to this unprecedented behavioral change
- Target has been relentlessly working to combat these unpredictable external forces and accommodate new consumer requirements
- Third quarter (2022) results have demonstrated how Target has continued to serve its guests despite an increasingly challenging backdrop
- In 2022, Target hit many milestones to gain customer loyalty. This article looks at some of these milestones
One thing that all of us can be certain about during these times is that consumer behavior has changed dramatically post-pandemic. The pandemic drove consumers to reassess their priorities and needs and buy goods and services in new ways. As a result, grocers, too, saw themselves adapting to this unprecedented behavioral change.
One of the leading general merchandise retailers in the U.S., Target has been relentlessly working to combat these unpredictable external forces and accommodate new consumer requirements. The third quarter (2022) results have demonstrated how Target Corporation has continued to serve its guests despite an increasingly challenging backdrop. Target's top line continued to profit from growth in guest traffic and unit share gains across all of the company's main categories due to the growing trust that Target has built with its customers over the last few years. In 2022, Target hit many milestones to gain customer loyalty. Here’s a look at some of these milestones:
Innovation with Larger Format Store
Target Corporation unveiled the next phase of its new store strategy and design to better serve its guests and team members and spur more growth. With approximately 150,000 square feet of area, Target's new larger-format stores are more than 20,000 square feet bigger than the chain average. They also make better use of ideal space and unique design elements. The retailer will continue to open stores of all sizes, but in the coming years, it will emphasize creating a larger footprint. Target will also implement its reinvented store design, with localized elements and a more open layout to serve and inspire its guests, to upcoming remodels and new stores throughout the chain.
"Target's stores are at the heart of how we deliver for our guests, whether they browse the aisles, shop online, or stop by for same-day services like Order Pickup and Drive Up. Guests and team members tell us they come to Target because they feel inspired, connected, and welcomed,” said executive vice president and chief operating officer John Mulligan. “With our reimagined store design and larger store footprint that better supports our same-day services, we can give guests more of what they love while incorporating features that build on our commitment to sustainability, community, and helping all families discover the joy of everyday life."
Enhancement of Curbside Drive-Up Service Offerings
In the fall of 2022, Target Corporation continued improving its same-day pickup services. As part of its aim to build on its simple, differentiating shopping experience, Target started testing the ability for guests in select markets to make a return or add a Starbucks order within Target's free, contactless curbside service through the Target app.
“Our guests continue to tell us they love the ease and convenience of Drive Up, and they have been asking us to add even more of the Target experience to the service. Adding a Starbucks order and easy returns, while expanding our backup item options, will give guests even more of what they love about shopping at Target, quickly and easily,” said chief stores officer, Mark Schindele. “Ongoing investments in our same-day services have built trust and relevance with our guests while meeting their needs — no matter how they shop.”
Expansion of Target with Ulta Beauty
Target builds resonance with guests and spurs incremental growth through its in-store and online experiences that enhance strategic brand collaborations, including those with Ulta Beauty, Disney, Levi's, and Apple. The retailer opened more than 250 new stores by 2022-end after the launch of 100 Ulta Beauty at Target shop-in-shops in 2021, eventually operating at least 800 at Target locations.
“Ulta Beauty at Target is unmatched in the industry, bringing guests the opportunity to discover new prestige brands while they shop Target’s incredible beauty assortment,” said executive vice president and chief growth officer, Christina Hennington. “This unique partnership is another way we continue to elevate the guest experience across our multi-category business to drive traffic and preference as we meet guests’ needs in innovative ways. With two powerhouse retailers, our collective brand love, loyalty, and omnichannel expertise will inspire guests and raise the bar for the beauty shopping experience.”
Partnership with Stoney Clover Lane
In spring 2022, Target Corporation partnered with Stoney Clover Lane, a personalized accessories brand, on a collection of more than 300 items that will be available for a limited time. These items include travel accessories, colorful apparel and swimwear, outdoor gear, and everyday beauty basics. Guests could easily customize various products to meet any style thanks to kits and individual patches.
“We know our guests are increasingly looking for unique ways to show off their personal style, and Stoney Clover Lane is a brand we’ve had our eye on for a while since they are known for their customizable pieces,” said executive vice president and chief merchandising officer, Jill Sando. “We’ve admired how the brand has created such a highly recognizable aesthetic with a deeply engaged audience. We know our guests will love finding Stoney Clover Lane at Target, just in time to show off their style for spring.”
Optimization of Inventory
Target Corporation announced a series of steps in June 2022 to optimize its inventory for the remainder of the year and free up more flexibility to concentrate on serving guests in a continuously changing environment. Target undertook these efforts to enhance its track record of market-share gains and growth.
“Target’s business continues to generate healthy increases in traffic and sales, despite sustained volatility in the macro environment, including shifting consumer buying patterns and rapidly changing operating conditions. The additional steps we are announcing will ensure that we deliver for our guests while driving further growth,” said chairman and chief executive officer, Brian Cornell. “While these decisions will result in additional costs in the second quarter (2022), we’re confident this rapid response will pay off for our business and our shareholders over time, resulting in improved profitability in the second half of the year and beyond.”
Expanded Collaboration with Apple
Target Corporation announced an expanded partnership with Apple in 2022 that will more than triple the number of Apple at Target stores and provide even more guests with a one-stop shop for Apple products and accessories. Target Circle (free-to-join loyalty program) members can now enjoy four-month free trial access to Apple Fitness+ without making a purchase.
“For years, Target has been a destination for Apple products. We are excited to deepen our collaboration with Apple so even more guests can access the exceptional Apple at Target shop-in-shop experience,” said Sando. “Through Target Circle, our popular free-to-join loyalty program, we’re also giving our guests the opportunity to try services like Apple Fitness+ for free, and with no purchase required. With this Apple expansion, we’re giving guests even more reasons to choose Target for all their shopping and tech service needs.”