Target plays catch-up in cosmetics - Target's Greatland superstores

Discount Store News, April 5, 1993

At Target Greatland, the cosmetics and fragrances department is struggling to develop a voice that would speak of its department store parentage.

Lacking either the space or the merchandising flair that its main competitors, Wal-Mart and Kmart, have been able to bring to this category, Target is relying on standard mass market brand names to help it bring in cosmetics consumers.

For example, a counter display of various high-end fragrances and some bright graphics in cosmetics adds new life to Target's department. Nonetheless, it still has a long way to go if it wants to match its competitors' for flair in presentation.

Most of Target's fragrance offerings are mass market brands from firms such as Quintessence and Revlon, although the new Greatland in Naperville, Ill., also featured a glass counter housing a high-end fragrance at the entrance to the department.

In addition, the new Greatland stores stock a run of "copycat" fragrances from a number of vendors.

In the Elgin, Ill., Greatland, only one main aisle endcap carried cosmetics. This was devoted to Bonnie Bell's lip gloss for children. The Easter display included a three-flavor package with a rabbit's head cap.

Target was one of the first discounters to go after the kids' cosmetics and toiletries market. In the Chicago Greatlands, much of the children's toiletry offerings are melded into the baby care section.

Greatland displays the bulk of cosmetics on standard runs and on wall displays towards the back of the department.

Another main aisle endcap offered Sarah Michaels bath lotions and bath accessories.

Target Greatland also cross-merchandises a number of bath products in the intimate apparel department. Under the Honors label, it carries a display of magnolia-essence bath soap, along with other pampering products like potpourri.

One of the major differences between Target and many other discounters is the placement of the cosmetics and fragrance department. Kmart, Wal-Mart and other discounters treat this area as an extension of the more fashionable accessory department. In contrast, Target places its cosmetics and fragrances next to the pharmacy and its range of H&BC products.

It is one of the few departments where Greatland highlights brand names. The tops of each cosmetic display feature the name of the displayed brand. On the back wall in the West Schaumburg store, a graphic of L'Oreal nail polish lights up the department.

Target's persona as an upscale discounter should be to its advantage in the category. Wal-Mart and Kmart both purchase a fair amount of product through diverters in order to feature department store brand perfumes and colognes. Both would prefer to buy directly from the high-end vendors, and as their clout and volume increase, this may yet happen.

Despite Target's upscale image--and its Dayton Hudson department store parentage--it has not ventured as far into this arena as have other mass merchants. One concern may be holding it back: that of competing with Dayton Hudson department stores, including Marshall Field's, if it attempts to stock more department store brand merchandise.