Dive Brief:
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Target on Wednesday said financially stressed holiday shoppers will find thousands of gifts priced at $5 or less.
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Every day from Nov. 1 through Dec. 24, Target will offer a Deal of the Day, which can be previewed the day before. Early Black Friday deals run Nov. 5 to Nov. 7, with other limited-time offers every weekend after.
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This year’s assortment includes over 8,000 new gift items, more than half exclusive to Target. The mass merchant is also touting “new AI-powered shopping experiences.”
Dive Insight:
Target is employing a holiday playbook also seen at other U.S. retailers as the season approaches, a merchandising strategy that seems to acknowledge that consumer sentiment has plunged amid inflation and job worries. Some recent reports suggest holiday sales could dip compared to last year.
Recent store checks at Target, Walmart, Costco, Tractor Supply, Dollar General and others in Nashville, Tennessee, found teams consistently emphasizing “value, sharp opening price points, and targeted promotions as consumers remain selective,” Bank of America analysts said earlier this month.
The season will be a test of Target’s merchandising chops under CEO Michael Fiddelke, who arrived in February. Toys are a strong point for the retailer, but efforts to turn around its apparel and home offer will take time, according to the Bank of America report. The Nashville store “had a complete Pokémon section and our tour confirmed this product is on fire," the analysts said. A fan shop is also scheduled to roll out later this month, they noted.
On Wednesday Target said its assortment includes “top toys from Lego, Barbie and Nintendo.” The retailer debuted a digital holiday kids catalog earlier this month, allowing children to save toys to a wish list. In apparel and home, the retailer is leaning into an area that luxury brands have struggled with of late — pricing that works for the aspirational luxury consumer.
Target calls this “luxe-for-less gifting,” an assortment that includes 100% cashmere, with prices starting at $25, pajamas priced from $10, holiday decor from $5 and faux fur throws at $30.
The company’s new beauty section, launched after its breakup with Ulta, looks promising, at least in Nashville, but it remains to be seen whether it will be able to maintain or best the high-single-digit growth in the category so far this year, Bank of America analysts said. Target said that for the holidays it is offering “new and exclusive gifts from prestige, emerging and global beauty brands at Target Beauty Studio.”
“Guests tell us they want to give gifts that are thoughtful and personal, while feeling good about what they're spending," Target chief merchant Cara Sylvester said in a statement.
As at Gap and elsewhere, Target is introducing AI tools in time for holiday shopping. An AI assistant dubbed “Ask Target” is in beta on the retailer’s website and app, and customers can use other AI features that allow them to search with photos, access reviews and restock.
