Behind 'Tarjay:' Target’s Strategy Combines Bargain and ‘Elevated’ Products | WSJ The Economics Of
HTML-код
- Опубликовано: 26 май 2022
- About 75% of the U.S. population can find a Target store within a 10 mile radius.
WSJ’s Sarah Nassauer explains how the retailer leverages its physical stores to grow services like in-store pickup and same-day shipping.
Photo Illustration: Ryan Trefes
The Economics Of
How do the world's most successful companies generate revenue? In this explainer series, we'll dive into the surprising stories behind how businesses work--exploring everything from Costco's "treasure-hunt" model to the economics behind Amazon's AWS.
More from the Wall Street Journal:
Visit WSJ.com: www.wsj.com
Visit the WSJ Video Center: wsj.com/video
On Facebook: / videos
On Twitter: / wsj
On Snapchat: on.wsj.com/2ratjSM
#Target #EconomicsOf #WSJ
I'll be honest I never even realized it was meant to be a discount store, I just thought they had good quality stuff and very reasonable prices. Hard to argue with. I like them as both a consumer and an investor.
@Leigh Hartman thanks for the history. I remember going there with my mom in the '90s but I was a little kid so I didn't have a concept of discount stores lol. I have the opposite feeling about their private label stuff, it usually seems pretty good quality to me and I'm always shocked to how cheap it is compared to brand name equivalents.
"good quality stuff and very reasonable prices" I think this is how they market themselves.
@@StereotypicalJordie Well the marketing matches the reality then, at least that's been my experience.
I don't know how you think it's affordable there.
@@jenniferromero571 its middle class, even reachable to lower class when stuff is discounted. And guess what, that makes up just about half if not 75% of the population.
I just like how clean it is 🤷🏾♂️
That is so true, it is always super clean
Target is the only store I'll go to just to "look around". It's so pretty.
It’s a retail store, not a field of flowers.
Peak old white lady past time.
@@internetusercynthia1621me as a young black woman walking around Tarjay because it’s nice 🫣👀
Target, where Walmart shoppers go when they're feeling fancy
Yes! I personally don’t like the shopping experience at Walmart. I pay a little more for a more enjoyable shopping experience at Target
Target is a company that evolves and moves forward. That's why they're successful. I find it somewhat admirable for such a storied retailer to be doing so well in a time when most of their competitors have died off. I never lived by a Target and it was never a significant aspect of my life but I'd definitely pick Target over most other retailers just for their clothes, home goods, and food products. I don't mind Walmart because their newest store designs are quite nice but most of the older Walmart stores just present an awful, cluttered experience with low quality products.
Are you aware that they tried launching in Canada and failed miserably?
@@necru104 who cares . They are successful in the bigger country
I currently work at Target and another side benefit to having a fulfillment center in your store is that you can pull people from other departments to support fulfillments, so even though I work in the style department I still help out with ship from store or order pick up.
Yes they pull people from other departments, then the store doesn't get stocked, and guests get mad. Understaffed is understaffed, regardless of who is doing what.
Yup that also means your departments doesnt get finished and you leave a mess behind unattended. By the end of the day everyone gets pulled to help your departments out because of the mess that was never fixed through out the day. I'm not blaming you but it remakes guest and workers upset they have to stay behind and do someone elses responsibility.
Never thought i'd find someone who is proud of being tossed around
Just hire more people and order more don’t like close your store cause you’ll make no money .
Ever since they rebranded their skincare aisle and got an ulta in them they’ve definitely elevated their image to be higher status. It definitely didn’t feel this fancy back in 2015
As someone who does work for Target this is very true. We’re always trying to change and keep up with the guest’s satisfaction and their best interest. Many stores within the last couple years have undergone store-wide remodels to modernize their internal (and somewhat external) look while still maintaining Target’s core values.
Target started as a discount store that became more of a department store. The reporter has it the other way around. As a child in the 70’s my family shopped at Target regularly and it was definitely a discount store. I don’t think they even sold clothes back then, except maybe socks and underwear. It was more like a Woolworths, if anyone remembers them.
The accurate historic basis of that statement was left out. The company that opened the first Target in 1962 was Minnesota based based Dayton's. They actually began as Goodfellow & Co in 1878, hence the current Target private label men's wear line. A 1969 merger changed the name to Dayton-Hudson. Marshall Fields was acquired in 1990. 10 years later, with Target accounting for 80% of profits, Dayton-Hudson took the then then unusual step of changing their company's name to Target. It made sense when they sold their Marshall Fields department stores to Macy's in 2006.
@@dk50b Very interesting history. Thank you. Do you recall Caldor's?
@@rosedevereux2391 Not only do I remember Caldor, growing up in Westchester my family shopped at the store Caldor replaced, Korvettes. Some more history for those unaware, Korvettes was among the first chains to challenge Federally mandated minimum pricing, opening the doors for discounters that followed.
Did she complained Target to Costco? Both have completely different format!
The target near me is old, and messy, I don't find them cheaper. The nearby Walmart is only 5 years in operation when they took over Kmart, last 6 months, Walmart renovated it again. During the renovation, lot's of great sale to move the inventory for the new shelves.
@@dk50b Wow, thank you for the history! I love reading these types of firsthand accounts. Are you still in Westchester? I have fam there.
I've worked here for 4 years. And right now it is chaos. This past week they sent us 4 double trucks in a week (aka 2000 boxes each truck ). Imagine trying to push that stock to an already filled spot which means you have to put it in the backroom (backstock) which is also filled to the max. We are being treated like a warehouse and it is insanely stressful right now.
I'm sorry. Hang in there!
It's because the warehouses is over full with inventory to the mex. At the warehouse I work at we have thousands of products just sitting in the yard for over 2 years and more is coming in. It's non stop over here as well.
Especially the dollar spot stuff ugh
Yeah get out of there and protect your back and body.
@@starz2313 On the upside, you guys at least get paid what you should. I'm making $16 whereas the DC closest to me starts at $21
Target has gotten a lot more organized throughout the years.
The bright lighting and clean layout of Target fills me with joy lol. I tend to visit the store in whatever American city I'm in.
Targets success is largely based on moving foward with the times and very brilliant partnering. They quickly adapted to online shopping, adapted to modern designs by remodeling their stores instead of expanding, partnered with Starbucks! And encourage small designers to partner them in exchange to sell their items during monthly recognition months like heritage ethnicity months. On top of big name collaborations with known artists brands on the high end. What is really attractive is balancing discount with high end. As a former worker there during the past decade, I have seen and experienced the flow of change. Each time pushing the "experience " for the guest to be helped out. It was a great corporation to work for tbh aside from the terrible management in my location, the cooperation itself is a healthy start up job for highschool after highschool and during college especially interests in business logistics etc as they offered played tuition in those fields. The management in a store can vary unfortunately making a pleasant or unpleasant experience
Target is definitely a posh department/grocery store. You feel wealthy shopping there. I remember a Friday night my high school friends and I got out of a movie theater and we just headed for the nearest Target. You can “window shop” the aisles and have a good time.
The book section in Target is my absolute favorite.
Target is more expensive than Walmart or Amazon, but it's cleaner, better aesthetics, and it is nice if you need something right away. You also end up finding random stuff there you don't really need. (I have found Aldi's Finds section to be similar) Also drive up & pick up is great and they don't charge for it.
Unlike Walmart where I thought I selected free pickup but that was somehow signing up for Walmart + & they charged my credit card $12 a month. Also, Walmart has a horrible produce section imo.
Their quality is a tad bit better.
Plus walmart also has other 3rd party sellers online which to me makes it more annoying to browse
I used to be a Visual Merchandiser for Target!! Absolutely beautiful company! Phenomenal actually…
I recently moved from USA back to australia and it’s truly sad how bad Australian target stores are in comparison to USA. I wish they bring the visual and other aspects to Australian target stores too!
@@ngh007 australian target is actually a completely separate company that ended up with the same name
The prices for everyday products like groceries and cleaning products are quite comparable to Walmart. I refuse to go to Walmart unless I need an item that Target doesn’t carry.
Except when they launched in Canada. Poor selection and much more expensive than Walmart. It’s why they failed miserably.
visiting Target, Costco and Sephora will always be the highlight to trips to the USA
I really love to say "Tarjay!"
"Over 75% of Americans live within ten miles of a Target"
Me: Lives within three miles of two targets. Within ten miles there are 9 Targets.
@Leigh Hartman (Old) Northeast Dallas, TX
I think Target’s in store shopping experience is quite good but the online presence and delivery service is still very behind. I do a lot of online ordering for groceries and even though I wanted to switch from Amazon to Target it’s just not possible.
Targets in store fulfillment is terrible. Walmart does it better.
Effective. I walk in for two things and come out loaded up. It is pleasant experience, so you don’t feel rushed
I go to target almost daily. Its just something to do and i usally just need a item or 2 and i just like to look around. Also lets not forget the awesome lights around the stores in the 90s!
I have a friend who goes to Target everyday with her husband bcuz she loves it so much
Discount???? No way, their stuff is insanely priced. At least in California
It’s California..
Love this series
4:00 Satisfying universal Target noise 😌
I hate the parking at our target… biggest reason I don’t go there very often. But I love their shopping carts.
I really like the clothes they offer. They fit very well and aren’t expensive either.
Same
The clothing selection at Target in Canada was bad. Ugly, unstylish, and insanely expensive. They failed miserably.
For men, it is good. For women, down the toilet. Their Merona and Mossimo used to be amazing.
The men's goodfellow clothing line is good. My husband really likes their tshirts and button up shirts. I bought the men's plain pullover sweatshirts $20 each but no big logos and they're well made. Definitely hit or miss but so far I've really liked those items they've held up great in the wash.
Can't walk out of Target without spending $100. Every... Single... Time... 😫
I have always loved Target. The part that I enjoyed was how quiet, clean and well stocked the stores are. However, with the advent of store pickup the store is constantly filled with loud sounds from the app it’s team members are using. It makes honking sounds and a beep like a car alarm. I am sensitive to sound so it drives me nuts. I have stopped shopping at target because of this and mostly do the occasional online order. It sounds like they are doing fine without out me just my personal experience.
i am also sensitive to sound but i work in drive-up and have to hear the car honks from the app all day. so I’m already desensitized to it😂
😂.. do everyone a favor and shop online exclusively. Because of you , workers can’t even have music piped into the store without offending peoples ears . Unreal …
sometimes is easy to forget that other target stores actually look nice. unlike the one i used to work in
Target is where you pay alittle bit extra so you don’t have to go to Walmart
I live in a large midwestern city with 2 Walmarts and a Target within a few miles of my home. Both Walmarts are poorly stocked, dirty, messy, and the employees are unhelpful, unfriendly and seem to resent shoppers. The Target is clean, well-stocked, organized, and the employees don't have chips on their shoulders. Target's figured this out. Walmart obviously still does well financially but I won't go there anymore.
Meh, target workers would disagree with you. Target just does a better job of branding so it doesn’t look like the employees have a reason to be miserable, but they’re actually very poorly organised as a company and don’t really respect their workers
Target is my go to place to shop and to order online. I check there before seeing what Amazon has. I like being able to pick many things up at the store.
In America target is where you go to pay Walmart prices + 10-15% markup for the pleasure of being around more physically attractive people while shopping
go real I was like where are the discount prices 😅😅😅
2:52 - So convenient for video game preorders and Day 1 pickups (Walmart and Best Buy do this well too). 👍
Target is here to stay. That’s the beauty of US free markets.
Target as a discount store??? never occured to me!
When comes to shopping I really rather go there than Walmart, difference on price is minimal but the stores are cleaner and workers seem happier when we go and ask questions we might have.
Going into Target is dangerous. “I need one thing… 10-15 items later”
😂😂😂
My best friend from high school met her husband while working at a Target and they still frequently shop there because of the long-term benefit of the employee discount and their social connections with current employees to know when the store actually has certain things in stock. Their daughter is lactose intolerant and there are some brands that Target carries that are significantly better for her than what comes through our Regional grocery chain. If I had an income of at least $30,000 a year I think I would do most of my shopping at Target. But I am a recent college graduate and that is not my life yet XD
I love Tarjay. I am a faithful customer.
Nice video.
Boggles my mind when people think its not just overpriced product from China. Relabeled, Branded, Packaged, Marketed, and Sold.
Same trash. Same big corps. Different building.
What’s the connotation you associate with “from China”?
@@montez.youtube To what extent do you think your one sided useless condescending question will have an effect? I think none.
Is this an ad for Target?
Yes
I will say Target's store Pickup is Lightyears better than Walmart's store pickup
I like target due to its higher end look which brings higher income, well-mannered customers. I am quite happy to not see or experience any civil unrest/disturbances in a target. Also, checkout lines are very quick and there are plenty of people working. Cant have that at walmart.
Target is a company that does its best to keep up with new product, marketing and social trends. That is why they always seem to be caught up with the times. The Supply chain side of it is a bit different. Although I agree they could use more investment in technology, it is the company culture that really differentiates Target’s operations from its competitors. It’s a fun company to work for with tremendous opportunities.
I love Target!!!
Would have been interesting to go into what changes they are making today
Watching this as a Canadian is so funny. When they came to Canada 10 years ago, we all thought it was expensive products
The smooth carts just make you feel a certain way
Love target
Yayyy for more empty shelf space!!!
Down the street...my new favorite
it's always interesting to me to see the difference in store numbers between Target and Walmart. I've always known there are way more Walmarts but spending the last 30 years in major cities you don't see the Walmarts. I would see them mostly when I visited my parents in a more rural part of America, though they had Targets there too. But in the places i've lived there's seems to always be 3 to 4 times as many Targets as Walmarts. Where I live, i opened about an 9 square mile area on google maps and there are only 3 full walmarts, and three of the neighborhood walmart grocery only stores. 6 total. There are 13 full Targets. In other places it's reversed.
its probably cause people in cities have more money, so they dont have as much use for walmart
There’s nothing cheap about those items lol 😂
I gladly spend a bit more to avoid walmart.
I still love going to Wal Mart though. It’s a great self esteem booster
What’s interning is the NYC area is one of the US areas that never really had Walmart. The one I remember going to growing up was horrible compared to when I went to Florida and Walmart was big and seemed to be the place to go for shopping. But Target has captured the city and found a way to have several locations even in Manhattan and change their locations to how New Yorkers shop in a way Walmart, KMart, etc never did.
target is one of my favourite stores in the USA
I will always love target and Amazon that’s the only two I need lol
I love Target.
Smart!!
The only thing I think Target is overpriced on is home decor
How can they be low cost and differentia at the same time, any expert explain me please.
#85👍🤔good educational business video!!
For the life of me, I don't understand what people see in Target. I've wandered thru their stores occasionally and they just looked like a bunch of junk to me.
In Australia, we have our own version of Target! But the thing is, our Target is struggling, and that some are being replaced by Kmart! And funny enough, Kmart in Australia is making billions of dollars, whereas Kmart in America doesn’t exist anymore
The number of times I tried to just pick up an online order at Target, but ended up shopping in store anyway is embarrassingly high.
Honestly glad target is still around, which is honestly something I thought I’d never say😂
Target went from an $80 billion company to $105 billion company in just 2 years. The average Target store has added $15-30 million in revenues in the last two years. America loves Target!
They took Target Cafe away. People can no longer sit and eat anymore.
Missing the PizzaHut Express.
Target: consistent brand image
Superstore in Canada is a great example of what Target is trying to do.
It's just Walmart-premium.
Lol, was that Dave Chappel? “Don’t get distracted at Target” lol
A video about the ‘economics’ of Target without discussing the epic failure of their Canadian expansion is disappointing.
Came here for this comment 🇨🇦
They went to the Edina Target apparently.
Employees don’t get payed enough
I think if Target offers good prices for the customer specially, is ideal; but the balance ⚖️ should be to let small business thrive or offer generous Franchises to them, everyone wins, and it sustainable
....you don't have to shop along side the 'unwashed'...and still get a good deal...
They should bring back the neon lights they were pretty
Check the target subreddit posted mostly by employees. Their workers are miserable
Any info about union busting? Or is that just a given?
Farewell Target. We barely knew ya. Love, Canada 🇨🇦
Cries in Canadian. I want to go so bad lol
Where there is more lighting the higher prices
What's up with the different pricing between store and online!?! When an online product is only available in store! Also noticed prices are different between stores within 25 miles. No longer a Target fan.
As been called this for 40 years.
I wish this would have mentioned how Target tried to expand in Canada and failed miserably
Lol crazy, that’s now what plays after
ruclips.net/video/hSkZlmFcy54/видео.html
CNBC has a video on that
shoulda had more Good & Gather Poutine
Discount? Yeah right, I walked out paying $40 for 2 bags worth of basic groceries🙄
Interesting how they didn't do so well in Canada though.
I appreciate WSJ posting this video full of great contents.
But It would be much greater with a “English captions they provide as usual”.
I love feeling middle class while getting a bargain. They always have the bigger name brands with the more generic brands- It's the best.
Their variety means it's basically a one stop shop even for basic items in most hobbies ie. Sculpture styluses, calligraphy pens, ((Target feels like they keep plants somewhere in the store))
"They have the stores already, and you probably live pretty close to one"
**me living in the uk**
I love target..target matches other people's prices,they have good quality athletic wear..the stores are clean and so are the bathrooms..you can follow the paths through the store one main road and you can see every dept..something is always on sale..theres not a target in detroit,so I have to take a lyft to the burbs..so sad..
They have Ulta in a target store.
I personally love Target. I shop there at least twice a week. I'm someone that wants a good deal but doesn't want to shop at Wal-Mart for number of negative reasons. Target become my go to in the early 2000s and I've been shopping there ever since. Their store brand Up and Up is fantastic. Target run and done ❤🤍
No long lines like Walmart