Target has created the feeling that its stores offer something special that its biggest rivals simply don’t have. It used to be just a sentiment or brand positioning of the chain, but now the retailer has partnered with brands that make their stores truly special.
While having a Starbucks, an Apple store, and Disney sections in its stores doesn’t make Target (TGT) – Get a free report The locations stand out on their own, but together, the retailer has built a mall concept of sorts. People go to Target not just because they need something, but because it’s fun.
DON’T MISS: Walmart, Dick’s and Target have a new response to retail theft
That’s something very few retailers have accomplished outside of the treasure hunt model used by TJX Companies. (TJX) – Get a free report Marshalls, TJ Maxx and HomeGoods and, to a lesser extent, Costco. They are places where the experience matters as much as the actual purchase.
Target has leaned into that in two ways. First, it offers its store-within-a-store concepts that include Starbucks, Disney, Apple, and Ulta Beauty. (ULTA) – Get a free report. He also has celebrity partnerships like his deal with Chip and Joanna Gaines’ Magnolia brand.
Now, Target has combined its two concepts by having Ulta Beauty, which has stores inside more than 500 of the retailer’s big-box stores, bring a new line from Rihanna’s makeup brand, Fenty Beauty.
Image source: Kevin Mazur/Getty
Rihanna moves under the Target umbrella
Rhinanna created Fenty Beauty with the idea of making it accessible. That actually fits both Target’s and Ulta Beauty’s business models. All three companies seek to offer high quality products at reasonable prices.
Now, starting October 1, Ulta Beauty locations inside Target stores will offer a variety of specially curated Fenty Beauty products. Called Fenty Snacks, the new line offers some of the singer’s company’s best-selling products in mini sizes as well as sets to give shoppers “a taste of Fenty Face and innovative glow in a fun new way,” according to a press release from Fenty Beauty.
“Our curated selection, featuring Fenty’s best-selling products as well as new sizes and mini sets, will spark discovery and bring affordable joy to our guests,” said Jill Sando, Target’s chief merchandising officer.
This agreement brings the Fenty brand to more consumers, which is in line with Rihanna’s mission.
“The goal has always been to bring Fenty Beauty to as many people as possible. I’m excited to introduce Fenty Snackz and give Ulta Beauty at Target guests a new way to experience our brand,” said the award-winning singer.
Many of the items in the line will be exclusive to Target.
Partnerships are key for Target
Target has been building stores that rivals like Walmart and Costco can’t match by expanding their partnerships. CEO Brian Cornell discussed those deals during the network’s second-quarter earnings conference call.
“Within our merchandising, we will continue to invest in our portfolio of industry-leading private labels, along with expanding key national brand partnerships, such as Ulta Beauty, Levi’s, Apple and Disney,” he said.
Target plans to expand the number of locations offering Disney, Ulta Beauty and upgraded Apple locations, according to Cornell.
The partnership with Ulta has been successful, shared Chief Growth Officer Christina Hennington.
“Within our beauty offering, Core Beauty generated double-digit growth, while Ulta Beauty sales at Target more than doubled compared to a year ago, demonstrating why we are so excited about this exclusive partnership” , said.
This happened in a quarter in which overall same-store sales fell.
Target also plans to build one of its celebrity offerings.
“Knowing that our guests can’t get enough of Taylor Swift, we proactively secured an exclusive vinyl deal that Swifties have purchased in droves. Plus, at home, we’ve seen incredible demand for Stanley tumblers and mugs. That’s why we’re working in partnership with Chip and Joanna Gaines to add exclusive new colors to the line as part of our beloved in-house brand, Hearth & Hand, only found at Target,” she said.
Target has had a tough time pleasing investors this year. The stock fell 12.6% in September, a down month for stocks overall, and is down 25.8% this year.
Costco was up 2.9% for the month and 23.8% for the year. Walmart was down 1.8% in September, but is up 12.8% for the year. TJX was down 3.9% for the month but up 11.7% for the year. Ulta fell 3.8% for the month and 14.8% for the year.
