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Brian Cornell, Target’s new chief executive officer, recently told the Wall Street Journal that the struggling discounter will alter its strategy, emphasizing a small group of merchandise categories in an effort to attract more customers, reverse alarming sales trends and bring excitement back to the stores.
Brian Cornell, Target’s new chief executive officer, recently told the Wall Street Journal that the struggling discounter will alter its strategy, emphasizing a small group of merchandise categories in an effort to attract more customers, reverse alarming sales trends and bring excitement back to the stores.
Products for infants and children, wellness offerings, and the fashion-oriented apparel and housewares, which played such an important role in building Target’s image as the “upscale discounter,” will come in for special attention.
It is Cornell’s belief that by revitalizing those "signature categories" the company can appeal to the aspirational shoppers from across the economic spectrum who constituted the core of Target’s constituency during its rise to prominence. That, in turn, will enable the retailer to differentiate itself in the midst of intense competition from both brick-and-mortar and online merchants.
Cornell, who headed PepsiCo’s food business in the Americas and was president and CEO of Sam’s Club before joining Target two months ago, is not alone in recognizing the need for a retailer to stand for something if it intends to remain viable. As a result, companies across the retail spectrum are honing their image.
CVS Caremark’s decision to change its name to CVS Health provides a clear indication of how the company — a leader in the retail pharmacy, in-store clinic, PBM and specialty pharmacy sectors — sees its future. Together with the elimination of tobacco products from its stores earlier this month, the new corporate name serves as a clear statement of what CVS is all about.
Examples of retailers that have established distinctive brands are not hard to find in the grocery channel. Whole Foods and Mariano’s, for instance, have staked out the high end of the market, while Aldi and Save-A-Lot appeal to budget-conscious consumers.
Retailers’ growing recognition that they need to deliver a strong, consistent message to a select group of consumers points to the fact that the mass market is not as monolithic as it once was. Walmart and Amazon might still be able to flourish by trying to be all things to all people, but for most food, drug and discount store operators segmentation is the new reality.
