Target tries to be cool

Nancy Marshall-Genzer Nov 19, 2014
HTML EMBED:
COPY

Target tries to be cool

Nancy Marshall-Genzer Nov 19, 2014
HTML EMBED:
COPY

It’s been almost a year since the data breach that sent some Target customers packing. And Target, which reports earnings Wednesday, is trying a number of strategies to get them back.

For one, it has a new CEO, Brian Cornell. And he’s not above admitting the company has problems. He says Target needs to be cool again.  

“What does it mean to be Target in today’s retail landscape?” says Amy Koo, a senior analyst at Kantar Retail. She says Target is trying to beef up customer service. “They’re doing beauty advisers, they’ve expanded to do baby advisers. You know, ask us if you need help.”

Target is also experimenting with smaller stores in cities.

One experiment that didn’t go so well? Opening stores in Canada. Canadians complained about the prices, and shortages of popular products. Some analysts are weighing whether Target should close those stores.

“If they can’t get it to be a profitable venture then they’re going to do what’s best for the shareholder,” says Sean Naughton, senior research analyst at Piper Jaffray.

Naughton has already calculated how much it would cost Target to pull out of Canada: about $1.2 billion.

Marketplace is on a mission.

We believe Main Street matters as much as Wall Street, economic news is made relevant and real through human stories, and a touch of humor helps enliven topics you might typically find…well, dull.

Through the signature style that only Marketplace can deliver, we’re on a mission to raise the economic intelligence of the country—but we don’t do it alone. We count on listeners and readers like you to keep this public service free and accessible to all. Will you become a partner in our mission today?

Your donation is critical to the future of public service journalism. Support our work today – for as little as $5 – and help us keep making people smarter.