Target has transformed a store in New York City’s SoHo neighborhood into a unique concept store. Inside the area, which resembles the company’s bullseye logo, is The Drop, a rotating display of seasonal styles and carefully selected items.
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In one of New York City’s hippest neighborhoods, Target continues to follow trends and unveils its latest efforts to stay ahead in style.
The Minneapolis-based retailer, which is in the midst of a turnaround effort and is about to change CEO, has renovated a large store at 600 Broadway in SoHo.
The unique concept store, which opens Tuesday, will feature daily specials, curated displays chosen by celebrities and influencers, and other types of special programs, said Carla Sylvester, chief guest experience officer.
The SoHo store is part of a broader effort by incoming CEO Michael Fidelke to restore Target’s reputation for style and sharp products. When he was named Target’s next leader in August, he said this would be one of his top three priorities, along with improving the customer experience and deploying technology to make Target faster and more efficient. He will take up the role in February, replacing longtime CEO Brian Cornell.
Target is trying to get back on a growth track after nearly four years of stagnant annual sales due to self-inflicted challenges and a more difficult economic backdrop. Store foot traffic and sales declined as shoppers reacted to sloppy stores, out-of-stock and locked-in products, and the company’s decision to scale back key diversity, equity and inclusion programs. Consumers across the country are also becoming more selective about their purchases of discretionary goods, a longtime favorite of Target, as they pay more for necessities like groceries, electricity and housing.
At the store’s preview event Monday night, Fidelke said the SoHo store is a “watershed” point in Target’s sense of style and future plans.
Sylvester said in an interview with CNBC that the store’s offerings have completely changed. The store, which opened about seven years ago, attracted many shoppers and had strong sales, but most of the items on sale were items sold at drugstores and convenience stores. It didn’t feature any of Target’s clothing or home décor products, she said, and it felt out of place in the neighborhood and felt like a missed opportunity for Target.
“We said, ‘This is the epicenter of style and fashion. We need to be able to showcase our best,'” she said, recalling the inspiration for the project.
Sylvester said the store redesign took four months from start to finish as the company rushed to complete the project before the holidays. The first floor of the store will be redecorated, and the basement floor will also be redesigned next year.
The Soho store reopens at a time when holiday shoppers and tourists flock to major shopping destinations for holiday gifts and party outfits, with Target chasing sales across the United States during the crucial shopping season. This is one of the retailer’s 42 stores in New York City and about 2,000 in the United States.
“The world is looking to New York to see what’s new and what’s coming next,” Sylvester said at the launch event. “And we want people to look at Target when they see what’s new and what’s coming next.”
Inside Target’s SoHo store
Inside the product area, which resembles Target’s bullseye logo, there will be rotating products organized according to themes.
Melissa Repko, CNBC
When customers walk into Target’s SoHo store, they enter a long red hallway that resembles the inside of Target’s bullseye logo. Sylvester said the area of the store is called “The Drop,” and Target plans to display merchandise there chosen around themes deemed relevant to the seasons of the year.
As with most stores, the rotating areas will change approximately every four to six weeks.
When the store opens, The Drop will be holiday-themed and include the outfits and items shoppers need to go out, relax at home, or gift the party host. In-store displays span a variety of categories, including clothing, home decor, and beauty products. For example, The Drop now includes a table of products that shoppers might want when spending a night at home with friends, such as card games, espresso martini mixes, and eye-catching glassware for cocktails.
Sylvester said its franchisees are already working on the next two themes for The Drop, which will focus on wellness in January and Valentine’s Day in February, the season for New Year’s resolutions.
Target’s SoHo store has an eye-catching “beauty bar” displaying fragrances, makeup items and more.
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Customers can step into Target’s Broadway Beauty Bar, designed for selfies and social media posts. Target’s assortment of beauty products will rotate, including fragrance brands like Fine’ry, exclusive to Target, and trendy mini versions of national brand face washes and lip glosses.
At launch, Target will feature items selected by celebrity makeup artist Katie Jane Hughes.
In addition to a “beauty bar,” this store also sells products commonly found at major mass retailers, such as large-format shampoos, body washes, and cotton balls.
Near the beauty area, shoppers can also press a button to take a black and white selfie.
Although the store’s layout is new, it has similarities to Target’s other New York City stores, with some items locked behind glasses cases that require an employee to open.
Target taps on celebrities and influencers to select their favorite Target items for “Curated By” display.
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At the back of the store’s first floor, Target will feature a rotating “Curated By” selection of items from across the retailer’s beauty, fashion and home categories, selected by celebrities and other creators known for their sense of style. Shoppers can browse and purchase their favorite products or scan a QR code to view the list.
Target’s first Curated By features favorites from actress and comedian Megan Stalter, who stars on HBO’s “Hacks.” Her selections include cushions, hot pink slippers, a metal water bottle and clothing themed to Universal’s film “Wicked: For Good.”
Inside the Gift Gondola, Target will display limited-edition products such as stuffed animals from its toy brand Gigglescape, as well as items themed after the company’s dog Bullseye, including special edition Haribo candy.
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Also at this store, shoppers can find Target’s “Gift Gondola” featuring Target-exclusive merchandise.
The display currently features holiday-themed stuffed penguins and bears, as well as other products from Target’s Gigglescape toy brand. Also included are several gift items themed to the retailer’s bull terrier, Bullseye, including special edition Haribo gummy candies and a Bullseye Pez dispenser.
Over time, Sylvester said Target may introduce some products that are unique to the SoHo store and can only be purchased there.
Disclosure: Comcast is the parent company of NBCUniversal, which owns CNBC. With Comcast’s planned Versant spinoff, Versant will become CNBC’s new parent company.
