Target opens FY on a high: new stores in new markets - Brief Article

Discount Store News, March 6, 2000 by Laura Heller

NATIONWIDE DSN REPORT -- With the grand opening of 16 Target stores this week, the retailer kicked off its first round of new store openings for the year, entered a new market, and unveiled two new SuperTarget stores and a new line of designer seating and expanded patio furniture with accessories.

The new SuperT's in Lafayette, Ind., and Roswell, Ga., reflect Target's latest format as it prepares a more aggressive expansion of its supercenter program.

The Roswell store complements Target's existing SuperT in nearby St. Mountain, Ga., and both units are considered part of the burgeoning Atlanta market.

The Lafayette store is the chain's first such unit in Indiana. Situated in a college town and roughly two hours from Chicago, the location seems symbiotic with Target's strategy of capturing a youthful shopper with a slightly higher socio-economic background than its competitors.

Each location includes a Starbuck's coffee outlet and the Archer Farms name on the grocery side of the store.

These locations replace existing discount stores in both markets and bring the number of SuperT's up to 18, and the chain plans to open eight more units this calendar year, seven in the Birmingham, Ala.-area and possibly one unit near Dallas/Ft. Worth.

The spring openings also officially bring Target into one new market--West Virginia. This leaves five states in which the chain has no stores: New Hampshire, Maine, Vermont, Hawaii and Alaska.

New merchandise for spring debuted at Target stores nationwide in concert with the store openings. A new line of seating dubbed "Cheap Chic" has been added to the home decor department. The effort features 12 new styles of seating options including several by well known designers such as Philippe Starck, Liuginio Cozzi and Franco Olivo.

Signage tells consumers about the designer and school of design for each particular style. Retro-style vinyl padded kitchen chairs stand along ultra modern sleek wood and steel units. Most are priced in the $69 range.

Clocks will play a more dominant role this spring, as well, evolving into a full fledged category for Target. An expanded selection to complement the chain's recent lighting line features wall and table clocks designed by Michael Graves, Robert Abbey and Target's own Target Style line. The collection includes Arts and Crafts styled stained glass wall clocks, contemporary brushed metal and traditional wooden clocks.

Target is also bringing fashion into lawn & garden with an expanded outdoor living selection, including trendy Zen-style water fountains and southwestern clay ovens for the patio. However, as of press time there are no contributions to the category from Target's signature designer Michael Graves.

Gone too, are the collectible dolls and "Baby I'm Yours" line. The products were meant to capitalize on the success of Mattel's American Girl dolls, offering several historical and contemporary dolls complete with clothes, furnishings and accessories. The product debuted last fall and has since been cleared from the shelves.

On July 23, Target plans to open 24 new stores in 16 states. It will enter the Connecticut market with its first store in Waterford, and also open new SuperTs in Texas and Iowa. Other states getting new Target units in July include Alabama, Arizona, California, Connecticut, Florida, Iowa, Illinois, Maryland, Michigan, Minnesota and Missouri.

According to industry observers, all indications are that SuperT is working for the chain. One analyst told DSN the company is pleased with the way the newest format is being received and has finally gotten the financial formula right in terms of profitability. Target plans to have 200 such units by 2010.