Target adds Woolrich and Einstein's Bagels: new merchandising initiatives and store openings arrive in time for holiday boom - Brief Article

DSN Retailing Today, Sept 23, 2002 by Laura Heller

MINNEAPOLIS -- As Target prepares to open 49 new stores on Oct. 13, it is also firming up new merchandising initiatives going into the all-important holiday selling season.

Among the most prominent of those developments is its recently announced line of Woolrich home goods, which includes wintry bedding, blankets and home accents with a lodge-like flavor. The collection includes oversized down comforters, blankets, throw rugs, flannel sheets and decorative pillows, all in a color palette meant to invoke a mountain retreat, according to the company.

The Woolrich line complements Target's more traditional product lines, such as Waverly home and Eddie Bauer outdoor gear, proving that in spite of its "hip" branding initiatives, Target has not lost sight of the predominant home decor and style choices across most of the United States.

Indeed, Woolrich stands in stark contrast to Target's more contemporary, youth-oriented product lines, such as the new Todd Oldham-designed collection aimed at back-to-school shoppers and young consumers just moving out on their own. The latter being a demographic Target has been courting with its increasingly youthful product lines and marketing initiatives, with programs such as Stephen Sprouse and Mossimo apparel.

But the company recently ran into a slight problem with one such effort when it was forced to pull an assortment of baseball caps and shorts after a customer in California discovered they sported hidden racist symbols. Apparently among white supremacists, the numbers "8-8" are slang for Heil Hitler, and these numbers were found on select merchandise under Target's Utility private-label line. The company issued a public apology for the mistake, said it was investigating how the slogan appeared, pulled the merchandise from stores and offered customers a refund for already-purchased items.

Given that Target tightly controls all aspects of design for its private-label lines, the investigation is likely centered within its Minneapolis headquarters.

Whether or not the incident will alter or slow Target's drive to capture the youth market is unclear, but it does illustrate just one of the risks any retailer runs in trying to not just keep up with trends, but set them. Target has spent billions in an effort to position the brand as hip, edgy and palatable to younger customers. Efforts that have paid off as the chain consistently manages to differentiate itself from chief competitor Wal-Mart.

The cost to remove the product is likely inconsequential and, as of press time, the company had not issued any information about those costs and what impact, if any, the recall will have on third quarter results.

In addition to Woolrich, Target's other merchandising initiative is bagels. The retailer will be adding bagels and cream cheese from Einstein's Bros. Bagels company to SuperTarget stores. The line joins Starbuck's coffee and Krispy Kreme doughnuts at the format, brands that help to differentiate the retailer in its grocery department in much the same way it has differentiated apparel and general merchandise departments as a discounter.

The Einstein program was tested earlier this summer at three SuperTarget stores in Colorado. Approximately 12 varieties of bagels will be baked fresh daily on site and the cream cheese will be displayed in a refrigerated case nearby Purchases will be placed in Einstein-branded bags, much in the same manner Target uses the signature Krispy Kreme doughnut boxes to reinforce the presence of a premier brand.

The company has opened 30 SuperTarget units so far this year, and will add 12 more on Oct. 13, primarily in existing markets for the format, such as Florida, Texas, Minnesota and Kansas City. Target will end its fiscal year with 94 SuperTarget stores.