Target is in the middle of a major store overhaul. Over the past two years it has remodeled 400 of its fleet of nearly 1,850 stores. This year and next it will pick up the pace to complete another 600 stores by year end 2020. The new stores are being outfitted with technology enhancements, new fixtures and a more open look and feel.
CEO Brian Cornell said the remodel efforts are “totally transforming how they [the stores] look, feel, and function.” The remodeled stores translate into a 2% to 4% lift in comparable store sales, reported Cathy Smith, CFO, in the company’s fourth quarter earnings call. Once Target completes its goal of remodeling ~1,000 store, the resulting lift across the chain will be massive, if it can keep those levels up.
One department getting an extra dose of spit and polish in the remodel is beauty. It, combined with household essentials, brings in more money than any other reporting category— 24% of revenues in 2018 and 29% in first quarter 2019.
That’s not surprising since beauty and household essentials are by nature a necessity-driven, replenishment business. But with the new design of the beauty department, the company wants to change that to make the beauty department a place for discovery as well. In other words, Target wants to give discovery-centric Ulta and Sephora a run for their money.
Speaking to the Business of Fashion, Christina Hennington, vice president and general merchandise manager of essentials and beauty, explained the shift. Target beauty is moving “from a very heavy replenishment-based business [with] a very functional layout to one that we’ve worked to balance between discovery and inspiration.”
https://www.forbes.com/sites/pamdanziger/2019/06/11/targets-new-look-in-beauty/#3002c7fb5741