Target pumps fashion to help home

Minneapolis – Target Corp. ceo Gregg Steinhafel said the 1,613-unit discount chain is “pushing the envelope” on fashion in apparel and home to give customers a more compelling reason to spend money on discretionary categories during the economic slump.

During an interview yesterday on Minnesota Public Radio, he said Target’s mostly female consumer has been cutting back on apparel and home décor – which he described as “the extras, the special purchases” – because she currently “just has no money to really go out and splurge.”

To woo her out of the commodity aisles, Target is actively “trying to give her a reason to spend money. We’re actually pushing the fashion envelope and trying to create an environment where there is something that gets her excited about coming into apparel or coming into home. We’re pushing the fashion side of it even more aggressively.”

But not at any price, he said.

To improve upon its “value perception” and drive business, Target is working “very closely” with its suppliers to avoid price increases “because we want to best serve our guests by keeping prices as low as we possibly can,” Steinhafel said.

When asked about Target’s falling share price over the past several months compared to Wal-Mart’s, Steinhafel explained the differences in the two retailers’ business models.

“During tough economic business times, Wal-Mart’s business model plays a little better to individuals more focused to the basic necessities of life,” he said. “When the economic climate is more normal in nature, we can perform, and outperform Wal-Mart.”

He referenced the 48 consecutive months – from mid-2003 to mid-2007 – when Target’s same-store sales exceeded those of Wal-Mart’s.

Home & Textiles Today Staff | News & Commentary

 Home Textiles Today is the market-leading brand covering the home and textiles markets, offering a comprehensive package of print and online products. Home & Textiles Today provides industry news, product trends and introductions, exclusive industry research, consumer data, store operations solutions, trade show news and much more.

Featured Video

  • Live From New York: Fashion Comes Across the Pond

    Camera Icon More Videos

Subscribe to
Home & Textiles Today eDaily
Receive the news you need to know about the trends in the industry delivered right to your inbox.


HTT Current issue for September 2017

See the September 2017 issue of Home & Textiles Today. In this issue, we look at the Attack of the Killer Third Tier: Monster off-pricers are climbing to the top of the food chain, plus New Products: 40 pages of new products debuting at the New York Home Fashions Market; Home Stores: TJX unveils first U.S. HomeSense store; Clicks to Bricks: Boll & Branch moves from digital to physical retailing; and much more... See details!