Apparel against the clock: timing is everything for Target's precision apparel team

Discount Store News, April 1, 1997 by James Mammarella

Target wins by staying within its limits. Sometimes that is a clear benefit for the apparel vendors in Target's supply chain, and sometimes it is more nettlesome. It's good when vendors can have meaningful discussions with Target's buyers and know that orders won't have to wait for approval from the stratosphere of the corporation because the buyers come to meetings already confident of their division's fashion, brand marketing and operations directions.

It is not so good when Target drops a supplier's business following a solid season of business because the chain has decided it will source the product directly in the "post peak" period of its fashion cycle.

That kind of trade-off is part of the Target game plan, one that has helped the company gain a balance of fashion and value in apparel that is more often than not very appealing to the moderate-income shoppers at the core of its business.

To be sure, the chain has set high standards for the discount class of trade, with a consistent record of achieving on-trend fashion basics and superb in-store execution. Target is very good at what it does, but does not strive to be a fashion magnet in apparel. And while Target prefers to develop house brands and stick with them, it does not pretend to be another Gap.

In today's tough apparel market, with chains vying for share across tiers, Target enjoys the distinction of not having to work on trading up. The chain envisioned in 1962 by John Geisse is consistent with the Target of today: an upscale mass merchandiser. "They're not really a discounter," said Bob Luehrs, president Chic/H.I.S. "They are really in between the mass merchants and the department stores."

While chains such as Bradlees and Venture have attempted vigorously to upscale their soft lines assortments, which can be very confusing to shoppers, Target has merely had to maintain its position.

Many in the industry remark on how Target has achieved success by virtue of its connection to the department store segment of parent Dayton Hudson, which can provide a solid and crucial grasp of fashion trends and product development. However, the down-to-business approach of Target's master merchants plays a role every bit as valuable.

"They go into a deep analysis of square footage on the floor," Luehrs said. "They are far more efficient in strategizing the whole selling floor" than are some competitors with a less sharply defined merchandising and operations structure.

The concern for positioning of product and return on investment extends all the way from executive vp, merchandising Greg Steinhafel and senior vp, soft lines Louis Padilla to front-line buyers such as men's actives senior buyer Kathy Merrill. Each individual understands Target's capabilities and priorities, making it clear to vendors what must be done in a product test to merit rollout, and also when to expect Target to take a program in-house.

"They walk away a season before a category footballs," said Marty Flowers, mass market general manager, Santana. "Target prefers not to compete with a fashion once it becomes highly promoted by the competition, identifiably at a good price."

The key for vendors, said Flowers, is to "show them something that is fashion-forward, but not too forward, put in small quantities for a test, and then if it's successful, be able to turn it inside of three months."

Target's buyers and trend merchandisers have a track record of bringing the world's fashions back to the United States and interpreting them for the mainstream. While the chain promotes its private labels through ad circulars and a modest level of general advertising, Target is really selling the product rather than a brand mystique--unless one concludes that the master brand under this roof, ultimately, is Target.