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Home » Inside Target’s Plan to Win Over Customers This Holiday Season

Inside Target’s Plan to Win Over Customers This Holiday Season

October 24, 2018
The Washington Post

How will retailers win this holiday season? By making shopping easier.

That is Target’s answer starting into the holiday season as it rides strong earnings, boosts its toy inventory and expands its customer service efforts nationwide. The brick-and-mortar behemoth is betting that by leveraging its reach to get shoppers their items faster than ever, free two-day shipping or same-day delivery will become as synonymous with the Target experience as steering a bright red shopping cart through the aisles.

“Target has never been better positioned to deliver on holiday than we are right now,” Target chief executive Brian Cornell told reporters on Tuesday.

The company has reason to be optimistic. In August, the company announced sales growth at a 13-year high, thanks to demand for toys and home goods. Online sales also rose 41 percent.

Plus, analysts are widely expecting record-breaking holiday sales this year fueled by a strong economy, a historically low unemployment rate and upward-ticking wages. Those factors have so far outweighed concerns that the tariffs and an ongoing trade war could sour holiday spirits.

Meanwhile, Target is poised to benefit from bankruptcies and store closures among some of its main rivals, including Sears, which filed for Chapter 11 bankruptcy protection last week. As it enters the first holiday season without Toys R Us, Target announced nearly a quarter-million square feet of new spaces for toys in more than 500 stores, as well as remodeled toy departments in more than 100 stores. The company is also adding more toys to its kids gifting catalog and is installing climbable, huggable toys at stores across the country. No more judging a toy based on a sealed box: Target wants to let kids assess a Lego slide or life-size plush lion for themselves.

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