The news: Target’s plan to win holiday sales relies heavily on in-store activations and a steady stream of deals throughout the last two months of the year.
The approach: Target is betting that getting shoppers into the holiday spirit will spur otherwise-cautious consumers to open their wallets.
- All of Target’s nearly 2,000 stores will be transformed into “nostalgic Alpine villages,” complete with festive décor and weekend events throughout the season.
- That emphasis on joy and whimsy will carry over to the retailer’s marketing campaigns, which will feature characters like the “Get-Ready Yeti” and “The Gifting Mice” to show how Target can help make the holiday season more fun for shoppers.
The details: Like many of its retail peers, Target is highly aware of consumers’ demand for value—and is shifting its promotions earlier to maximize its share of holiday dollars and stave off competitive pressure.
- The retailer will offer weeklong deals from November 2 through December 24, putting it in direct competition with Ulta Beauty, Lowe’s, and Best Buy.
- Target’s Early Black Friday Sale will run from November 6-8, a full week before Walmart’s first Black Friday event kicks off, and feature deeper discounts than previous events.
- Target is also promising to refund the difference if an item’s price drops later in the season.
Our take: Target could use some joy this holiday season. The company is struggling to return to growth after alienating shoppers with its diversity, equity, and inclusion rollbacks and losing some of its signature “Tarzhay” magic. That slump has led to the chain’s first round of mass layoffs in a decade, as it looks to cut costs and simplify its organization.
- Enhancing the in-store experience could help: Nearly two-thirds of holiday shoppers expect to visit stores to find deals and decide what to buy, according to a recent NielsenIQ survey.
- A fresher, more affordable assortment could also win over cautious customers.
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