September 13, 2023: Target teams up with Fashion-Meets-Philanthropy Lifestyle brand to bring Joy to more families and communities.
The cheap chic vendor has set a reputation for launching its brands and dedicating parts of its stores to merchandise from well-recognized federal names, such as Levi Strauss, Disney, and Apple. It also has mini Ulta Beauty shops inside a growing number of its stores.
With the new agreement, bright jewellery designed by Kendra Scott for Target will be available online and at about 150 stores. The first collection of more than 200 articles, ranging between $15 and $60, will hit on October 22, just as customers set holiday shopping lists together and snagged early gifts. Most items cost less than $40, Target said.
The previous year and a half has brought a sharp dose of reality for Target, which thrived and gained market share during the COVID-19 pandemic. The retailer marketed with the fallout of having the wrong merchandise last year as shoppers moved out and about again.
In recent quarters, Target shoppers have pulled back on buying clothing, home decor, and other discretionary items. At the same time, they spend more on experiences and pay higher grocery bills because of inflation. The establishment also faced public backlash over its Pride merchandise collection, which dinged sales in its most recent quarter. It has also pointed to scheduled retail theft as a challenge weighing on profits.
Target cut its forecast in August. It now expects comparable sales to drop around mid-single digits and earnings per share to range between $7 and $8 for the full fiscal year.
Shares of Target have fallen nearly 18% this year, far behind the 17% gains of the S&P 500. The company’s stock hit a 52-week low in late August.
On a call with reporters the previous month, CEO Brian Cornell said Target expects consumers to feel pressured in the coming months because of the return of student loan payments, rising interest rates, and the still higher cost of needs.
Target has yet to get shoppers to add discretionary items to their baskets, such as makeup and other beauty items.
Sales at its mini Ulta shops in the financial second quarter more than doubled, and sales of other beauty items posted double-digit gains compared to a year ago, Target’s Chief Growth Officer Christina Hennington said last month.
That’s a formula Target wants to replicate in other categories, such as jewelry.