Thursday, June 9, 2011
Has Tar-zhay lost its cachet?
There was an interesting article in The Wall Street Journal yesterday (which you can read online here) posing the question of whether Target has lost its cachet. Analysts say that Target has confused its shoppers by emphasizing food and low prices at the expense of its hip, cool image. Target shoppers are still stocking up on toilet paper and foodstuffs, but the stores are having a hard time enticing customers to spend money on stylish clothing and home goods—which are more profitable and make up more than 40% of annual sales. And it was precisely those apparel and decorating items — mixing mass with class — that set Target apart and allowed it to be one of the few discount chains to thrive against Walmart's relentlessly low prices.