Minneapolis Market Visit Target Town February 2011

7/30/2019 Minneapolis Market Visit Target Town February 2011

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Market Visit Report - Target Corp.

February 2011

Minneapolis, USA


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SINS www.salesisnotsimple.com

About SINS

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Training & Development:

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To Target?Join us this Fall for our Targeting Canada

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Toronto - October 2011


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the goal of this report to is share with the Canadian CPG / Retail industry someobservations we made during our visit to Minneapolis, MN to scope out Target andto give you an idea of what you might expect to see once this unique retailer arrivesin Canada in 2013.

we hope that you find these insights useful in your day-to-day work and that youcan draw inspiration from them.

if you would like any more information on what you see in this report please feel freeto reach us at

overview:

Summary
mailto:[email protected]:[email protected]


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Target is coming to Canada in 2013. If that isnews to you, you have been living under arock.

SINS ventured to Minneapolis, the home ofTarget to check out a few stores and see whatwe can expect north of the border.

Target is the worlds tenth largest retailer withoperations solely in the United States. Themove to enter Canada comes at a time whengrowth in US retail is difficult.

Target is an exceptional retailer that makes anemotional connection with its shoppersthrough great products, great service andgreat merchandising - some of which you willsee in this Market Visit Report.

Enjoy the tour!

overview:

Minneapolis, MN - Target Town


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2009 % Change

Sales (Millions $USD) $65,357 +0.6%

Operating Income $4,673 +6.2%

Net Earnings Per Share $3.30 +15.4%

Share Price ($USD) $51.09 +63.8%

# of Stores 1,740

Employees 351,000

Key Figures Fiscal 2009

Sales results and profits both grew reflecting the strongest retail profit in history.

In Fiscal 2009 Target remained focused on initiatives to deliver a superior guestexperience, drive growth, enhance gross margin and profitability, improve expensemanagement and invest capital productively.

Added the PFresh design which includes expanded fresh grocery in generalmerchandise stores to 108 locations including all stores in Philadelphia.

Dedicated more space to traffic driving categories.

Repositioned the Target PL brand as up & up in line with the Expect More. PayLess. brand promise.

Introduced the Low Price Promise to address the perceived gap vs. competitors.

Opened first three stores in Hawaii and its third store in Alaska.

Store Count: General Merchandise 1,489 (+46); Super Target 251 (+12).

38 distribution centres, including 4 food distribution centres.

California (244), Texas (148), Florida (126), Minnesota (73) and Illinois (86) make up40% of stores.

Promoted a limited-time-only fashion collection by Anna Sui offering high-enddesign at low prices.

Merchandise Split: Household Essentials 23%, Hardlines, 22%, Apparel &Accessories 20%, Home Furnishings & Decor 19%, Food & Pet Supplies 16%.

Loyalty programs offered through Target Visa and Target card (REDcards).

Named one of the Top 25 North American Companies for Leaders by Fortune.

Supports the community by consistently donating (since 1946) 5% of incometoward education, the arts, social services and volunteerism.

Intensifying the commitment to make Target the place to shop, the place to workand the place to invest.

Expand the PFresh concept to an additional 350 stores.

Revamping of merchandising in Home, Beauty, Video Games, Electronics & Shoes.

Continue to evolve the store format for dense urban markets.

Examine the possibilities for international expansion.

Expand the mobile capabilities and solutions available, providing greaterconvenience and allowing shopping anywhere, anytime.Source: Target Stores Inc. Annual Report 2009

Year End January 30, 2009

Key Facts


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Target Store Formats

Classic store format within the Target chain ranging from 95,000to 130,000 square feet with a range of hardlines, softlines and asmall pantry selection of groceries.Store Count: 1,381

General Merchandise:

Three main formats:

The future growth format for the company, these stores are classicgeneral merchandise stores that have been renovated to includean expanded food assortment including a selection of fresh food.Store Count: 108

PFresh:

Super Target store average 175,000 squre feet with theincremental space committed to a full service grocery store withservices such as deli, fresh meat, and in-store bakery.Store Count: 251

Super Target:


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observations:

Summary

1. Inside Target Headquarters

2. The Red Cart

3. Exclusive Products

4. Innovative Merchandising Solutions

5. Store-Wide Events

6. Focus on PFresh & Low Prices

7. A Blast From The Past

8. Canadians Already Doing Business at Target!


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Inside Target Headquarters

Main Entrance - Target Headquarters - Minneapolis, MN

You really get a sense of a company - its culture,its values and its spirit by visiting its headquarters.

Targets headquarters is located in downtown

Minneapolis and the feel in the building is youthful

and vibrant - a far cry from the spartan and

gloomy feeling I have had in many retailers

offices.

The feeling at Target was more like what you

would experience at a large advertising firm or

fashion / design company.

Lots of well dressed, young and happy executives

wandering through the building; from its company

restaurant, to the wide-open meeting space

complete with town clock and fireplace, the

company museum and a conveniently located

Target store just steps away.


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Inside Target Headquarters

Spot - The Ever Present Company Mascot Target Mission and Strong Company Values

The Target Brand - Its Greatest Asset


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The Red Cart

Fully Recyclable Shopping Cart

The famous red cart at Target is almost as

fashionable as its shoppers - call it the Mini

Cooper of shopping carts.

Red is the dominant color in a Target store and it

gives the environment a unique feel.

Speaking of the environment, these carts are fully

recyclable with old carts finding their way back to

the store as merchandise including bright red

bowls for your fido.

How neat is that?

Zellers carts were red too. Somehow Target justdoes it better.


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Exclusive Products

Target Exclusive Swiffer Collection

Most people put their Swiffer away in a closet before

their guest arrive but maybe not Target shoppers.

With this limited edition, exclusive Swiffer collection

in Target red, one might be tempted to leave it

discretely in the corner - invoking questions from

jealous clean freaks.

Where did you get that?. Tarzhay of course!

This end aisle display dominated the household

cleaning section and could not be missed. A great

initiative from P&G.


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Innovative Merchandising Solutions

Car Seat In-Section Information Station

Target prides itself in being more of a self-service

department store than a discounter.

Here we see a full four foot section of the plan-o-

gram dedicated to helping guests find the right

product for their needs.

Not sure which car seat is safest for your child?

Measure them and find out which stage they are

currently in. Then find the products for that stage

smartly merchandised in color coded sections next

to this information station.

Need more help? No problem. Staff have 60

seconds to respond to your call from one of manyservice phone locations around the store.


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Shopper Friendly Video Game Merchandising

Video games present a problem for

retailers as they are a target for theft and

are labour intensive to merchandise andserve shoppers from locked display

cases.

This simple but effective solution allows

the shopper to browse both sides of the

game and only requires a staff member

to unlock the case once a purchase

decision has been made.

Anti-theft systems often have the

impact of making all shoppers feel a

little bit like a criminal.

This solution enhances the shopping

experience by removing the hoveringstaff member away from the situation

and allowing the shopper to browse

leisurely - with a probable increase in

shopper conversions and sales volume.


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This amazing interactive video game catalog allows the shopper to sort through game titles by

game system, age rating and player rating and then provides in-depth details about the game.

In the off chance Target is out of stock at this location a shopper can find copies at a nearby store

and even get a map of how to get there.


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Archer Farms - Target PL - In-section Billboards

Target understands brands.

Throughout the store you will find these in-

section billboards that take up a four foot

section to advertise to the shopper at the

purchase decision point.

This program for Archer Farms, Targets

premium private label in food; appeared at the

leading end of the bread section.

What other retailer would dedicate this type of

valuable space to brand messaging? Very few.

These types of executions are not only the

purview of private labels. I saw several

examples of national brand billboards in-section

as well.

The key: the message must be worth the

investment of space!


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Play-Doh Gravity Feed Sidewinder

Sometime the best ideas are the most simple.

This Play-Doh gravity feed sidewinder was doing a brisk

business at the leading end of the toy section.

Bright, simple and easy to load. Merchandising 101.

Note that the display is nearly empty - not a regularoccurrence at Target which prides itself on in-stock

positions, measuring out-of-stocks once the shelf

inventory falls below its presentation minimum.

There may be two units on-shelf but if the presentation

minimum is three units - its out-of-stock in Targets eyes.

We feel the display was working as there were no out-of-

stocks in the Play-Doh section of the plan-o-gram.


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Store-Wide Events

Consistency is critical in building a brand.

Target is the king of consistency with a common theme being pervasive across the store at any one

time. Love Sweet Savings, the Valentines Day event, could be seen in almost every section of the

store from candy to housewares to apparel.


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Focus on PFresh & Low Prices

PFresh - Low Price Promise End Aisle Signage

PFresh is the future of Target. There will be 350 more rolled

out across the US in 2011.

These efficient food / general merchandise models will out

number Super Targets in 2011 after successfully rolling out

the format in 108 stores.

Targets premium feel and brand does trigger price

perceptions to be be higher for Target vs. their competitors.

Target is battling back with its Low Price Promise which you

will find all around the store including in PFresh.

HABA - Low Price Promise End Aisle Signage


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A Blast From The Past

Pepsi Throwback - Coming To Canada!

I had to throw this one in my basket.

This product was not a Target exclusive but it is

a great fit with what you expect to find when you

are shopping at Target.

Unique, cool, hip and available for a limited

time.

If you want to try it too theres good news:

Pepsi Canada has announced that it is bringing

Pepsi Throwback to Canada for a limited time

offer in 2011. Get it while it lasts.


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Canadians Already Doing Business at Target!

Why wait until 2013?

This thought must have struck Liberte Foods from St. Hubert, Quebec which had a great

presentation of product at Super Target. Liberte is now part of the Yoplait group.

Is your product unique, hip, cool and match the Target shopper? What are your opportunities with

them in the United States? How can you get a head start on your Canadian competitors?


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Documents

Minneapolis Market Visit Target Town February 2011