faux french retail royalty

bonjourrrrr,

something about labor day always makes me nostalgic for the pure joy of back-to-school shopping. the thrill of a new backpack, fresh kicks, & those gorgeous glitter gelly roll pens.

the excitement of that end of summer target run—pronounced tarjay—is unmatched.

so today i’m spotlighting how target has evolved the product leg of their profiTABLE (be sure to read that edition if you missed it!).

time to study up on where target’s been, where it’s now, & where i think it’s going! i’ve spent most of my career with “planning” or “strategy” in my job title which means i’m passionate about making predictions 🙂 so expect a lot more of these from me in future newsletters.

commodities & collaborations

let’s start with a little trip down memory lane. back in the not so distant day, it was all about commodities—basic, no-frills shopping at big box retailers.

i was surprised to learn that this trend is actually kinda recent. many of today’s highest grossing revenue retails are much “younger” than i expected: walmart opened in 1962, costco in 1983, & amazon in 1994.

founded in 1901, target happens to be one of the oldest big box retailers.

target didn’t always have the chic vibes we know & love today. it started out in 1962 as a big-box discount retailer, offering a wide range of products at competitive prices. think value over everything, catering to budget-conscious shoppers.

but here’s the twist—target didn’t settle. they evolved.

in the early 2000’s that they started to stand out with their private-label brands & their exclusive designer collaborations, like the iconic isaac mizrahi partnership in 2003. this marked their transition from just another discount store to where you could get high-style products that couldn’t be found anywhere else—without breaking the bank

positioning & partnerships

fast forward to today, and target has evolved in a major way. they’ve recognized that one size doesn’t fit all, especially in urban areas, so they’ve renovated lots of stores and rolled out smaller format city target stores tailored to local markets. these stores are all about curated product assortments that meet the specific needs & seasons of the community.

target’s crushed the partnerships game too. here’s a timeline of a few notable mentions as of late:

• aug 2021: ulta beauty @ target launched in aug 2021

• oct 2023: launched fenty beauty x rihanna fenty

• oct 2023: launched viarae prosecco x issa rae

• oct 2023: launched good.clean.goop beauty line x gwyneth paltrow

• mar 2024: launched lemme supplements x kourtney kardashian

• jul 2024: launched lolavie hair care x jennifer aniston

• aug 2024: launched blake brown hair care x blake lively

they’ve simultaneously been going hard on partnerships with dtc brands. starting with native in 2017 & expanding into so many other dtc brands that i’d need a lot more space to list them all.

target’s doubling down on this move as evidenced by their online partnership with shopify to be a sales channel to shopify brands by invite only.

target’s ceo announced in 2023 that they’re leaning into affordable joy.

glowing & growing

so where will target go next?

emily sundberg from the feed me, a newsletter about culture through the lens of business, thinks target is becoming sephora. given the ulta partnerships, the lipstick effect & their push towards lower priced premium beauty products, this adds up.

andrea hernández from snaxshot, a newsletter dedicated to the latest in food & beverage, thinks target is becoming an affordable erewhon. given their commitment to private label groceries, 60% of which do not have a national equivalent, this adds up too.

personally, i think it’s a combo of the two.

i think target is becoming whole foods (especially since the amazonification of whole foods). but instead of natural & organic requirements, target will require quality, value, & vibes, while hoping that you impulse buy clothes, electronics, & home decor.

target only started selling groceries in 1995 at the first supertarget & really started going hard on groceries in the pandemic. since 2019, target’s food & beverage sales have grown by $8B to $24B.

grocery is a great way to lean into the target effect of coming in for few things & then unintentionally overspending on lots more things.

shocking shopping stats: +75% of americans live within 10 miles of a target & 55% of target guests baskets include grocery.

so, just like target has evolved from big-box to chic, we’re all constantly growing & redefining what matters most. whether it’s shopping for school supplies or planning your next big move, it’s all part of the journey.

let’s keep evolving, one targét run at a time.

p.s. see. spot. save.