Key Categories and Trends for Target's Business
To understand specific aspects of Target's business, including key categories, strategies for brands, trends, CPG space, differentiation strategy, and shopper/guest segmentation.
- As a retailer, Target has five main product categories that contribute from about 15% to 25% of total revenue. They include food and beverage, apparel and accessories, beauty and household essentials (including pet supplies), clothing and accessories, food and beverage, hardlines (electronics, software, sporting goods, toys), and home furnishings and décor.
- In terms of geographical reach, Target is present across the US. 40% of total store locations are found in five of its states, including New York, California, Florida, Texas, and Illinois.
- In the fiscal year ended in January 2019, the company reported revenue of $75.4 billion, up 4% from 2018.
- Target has, in the past year, ventured into new market segments launching new brands such as Smartly (cleaners and personal care), Original Use (male-focused urban apparel), Auden (lingerie for all ages), and Everpsring (recycled and natural household essentials).
- Smartly, Target’s recently-launched its own-label brand in the CPG space. 80.9% of consumers believe Smartly’s prices are competitive, while 73.4% like the look of the brand. Smartly is expected to cannibalize sales for other CPG brands in the market substantially.
- A comprehensive brand positioning strategy and customer segmentation strategy for Target can be found here.
- Due to time restrictions, the initial hour of research only touched on a few aspects of Target's business. The research team will need extra hours to fish out information and come up with a comprehensive report that addresses all the questions.
- To allow the research team to proceed with the research, please choose one or more of the proposed next steps in the scoping section below.
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