Filed under: Marketing and advertising, Target Corp. (TGT)
With designers like Isaac Mizrahi, Target (NYSE: TGT) has done the unthinkable: establish itself as a massive box discounter that’s also a place you can shop for clothing without feeling ashamed. Now the company is taking it to the next level with plans to open four “Bullseye Bodega” stores in Manhattan on September 12th, timed to coincide with the end of fashion week.
While a few boutique stores certainly won’t add materially to the company’s sales, that’s not reall the point: for a cost that’s little for a company of Target’s size, the company is generating priceless publicity, and strengthening its brand as a leading clothier for the fasionable but budget-conscious. The fact that The New York Times did a story on the new stores talks to the value of the plan.
Target’s stock has taken a beating of late, as its increasingly upscale product mix hasn’t fared as well in the current environment as Wal-Mart (NYSE: WMT). But when the economic tide turns — as it always does — Target should be well-poised to capitalize.
Super-investor William Ackman has a considerable paper-loss on his massive investment in Target, but he recently prepared funds to purchase more. Investors may do quite well following him.
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