Target wants to be more like Costco

Jennifer Collins Feb 23, 2010
HTML EMBED:
COPY

Target wants to be more like Costco

Jennifer Collins Feb 23, 2010
HTML EMBED:
COPY

TEXT OF STORY

Bill Radke: This morning, Target releases quarterly earnings, one of many retail chains reporting this week. Marketplace’s Jennifer Collins says retailers still have some convincing to do to get customers back into stores.


Jennifer Collins: Remember this Target ad?

Target Ad: Expect more, pay less.

Retail consultant Burt Flickinger says Target now wants it customers to expect a lot more. Think: Costco.

Burt Flickinger: Target’s trying to lower its price image by adding big bulk warehouse items.

Flickinger says the strategy may help, but Costco will probably remain the king of 36-pack toilet paper.

He says stores have to push bargain items to bring in buyers. Take Saks Incorporated, which reports earnings tomorrow. Its high-end stores, Saks Fifth Avenue, have recently been promoting affordable brands from the likes of, say, Michael Kors.

Daniel Butler is with the National Retail Federation:

Daniel Butler: Every retailer is looking at the consumer’s perception that has evolved and the consumer right now is much more focused on: “Is this product the right price for the value?”

And he expects consumers to remain frugal for many more months.

I’m Jennifer Collins for Marketplace.

We’re here to help you navigate this changed world and economy.

Our mission at Marketplace is to raise the economic intelligence of the country. It’s a tough task, but it’s never been more important.

In the past year, we’ve seen record unemployment, stimulus bills, and reddit users influencing the stock market. Marketplace helps you understand it all, will fact-based, approachable, and unbiased reporting.

Generous support from listeners and readers is what powers our nonprofit news—and your donation today will help provide this essential service. For just $5/month, you can sustain independent journalism that keeps you and thousands of others informed.