Target is preparing for an “aggressive” promotional Christmas season this year, and believes it can “win the holiday season”, CEO Gregg Steinhafel said in an interview with USA Today.The retailer is cutting back on inventories and taking a “conservative approach” to reduce the need for a “liability” of unsold stock which will have to be marked down to sell. Product mix is also changing, as Target hopes to offer ‘better’ and ‘best’ in many categories. Steinhafel said: “We are making slight adjustments to our mix and where we place our emphasis... Since 2008, we've seen some seasonal categories decline. We're not expecting a decline, but they may just not grow at the rate some of our other businesses might grow this holiday.”
Regarding future priorities, multi-channel remains key, as does the Pfresh remodeling program, which Steinhafel described as “a comprehensive remodel within our stores. It adds a much larger assortment of dry, dairy and frozen, then we add fresh perishables to the grocery mix, which is something we haven't had in the past.”
He added: “While we are in and remodeling, we update the entire store and add new visual elements throughout, update apparel racks, add a new shoe area, add new beauty and skincare areas and update our electronics area. Essentially, when we're through with the remodel, we have a brand new Target store. We didn't have a broad enough assortment of groceries. Our prices are ultra-competitive, and in most cases, they are below the local grocer retail prices.”
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