August 30, 2007
Target Builds Buzz Overseas
Target plan to launch a pop-up store inside Selfridge’s in London is all about “building buzz,” Stan Pohmer, a retail consultant, told the Minneapolis Star Tribune. The question some are considering is if the buzz Target is building is a precursor to the company finally expanding overseas, perhaps with stores planned for the U.K.
Although Target officials have talked about possible expansion outside the U.S. in the past, mentioning Canada, China and India (Target has an IT organization in place there), the U.K. angle is new.
Back in April, Target CEO Bob Ulrich told financial analysts at a presentation in Minneapolis that the company was in no rush to enter India or China. He reasoned that Target could expand to those markets in five to 10 years when consumers there would “be more affluent and better educated” and “be more in synch with our strategy.”
Canada has also been prominently mentioned in the past although, it has been thought Target would look to buy its way into the country should a large block of stores become available.
For his part, Mr. Pohmer thinks Target is looking to build buzz for buzz’s sake.
According to a MarketingWeek report, Target is planning its pop-up store launch to coincide with London Fashion Week next month. The retailer is said to be working with “a big name fashion designer” who has developed an “exclusive line” to celebrate Target’s first foray selling overseas. Target will also sell items from other “exclusive” lines it carries.
Discussion Questions: First, what do you think of Target’s overall pop-up store strategy and its choice of London for the next execution of that strategy? Secondly, is Target ready to finally move into markets overseas and do you see the U.K. as a place the company might start?
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Hmm, we have “pop-up” stores in the UK and automated restaurants in Germany. This must be the “Jetsons’ European Vacation” week.
Anyway, back on topic, I find this move a bit confusing (something, no doubt, related to my fuzziness over the term itself). Although Selfridges describes – or at least described – itself as a “store of brands,” I don’t see how that idea can encompass a brand which is actually another retailer. Would a “store” made up of, say, Saks, Macy’s and Target “boutiques” make any sense? It sounds more like a shopping center than an actual store.
London Fashion Week gets great publicity back in the US. Target will get a decent return on their London publicity budget. If Target built a pop-up store during the Beijing Olympics, that would earn great publicity in the US, too. Target doesn’t have to build a store in the UK or China to make the publicity pay off. The pop-up stores just need places that have media clusters.
Creating a pop-up store aligned with fashion in a well-known and respected UK store is a great way to create buzz and begin to create a “fashion” image. It’s a great way to test the market without a permanent investment. Smart idea!
Target China, Target. What’s London got to do with anything remotely important in retail? What sort of buzz can be built in the U.K. besides the epic, never-ending angst about Diana’s death? Seriously, how can one take that society seriously? Everyone knows that Elvis is looking after Diana, so let’s move on, people! Places, everyone!
Target has used pop-up stores quite a bit and very successfully. Probably more retailers should consider them–or a variation.
As to overseas expansion, I’ve believed for quite a while that it’s inevitable. However, waiting 10 years in Target’s case is not feasible. Now is the time to be making a move or planning to. I’m willing to bet Target is doing just that.
Target is great at building buzz, and their history indicates that many times it is simply for buzz’s sake. A few years ago, Target rented a barge that was docked at Chelsea Pier in New York, and created a pop-up store for Christmas, featuring their top selling items. It was not placed there as a precursor to a New York store; it was simply executed to create great PR coverage, which they extensively received.
Selfridges is a great store that caters to the young affluent in London, and creates “happenings” on a regular basis. Partnering with this department store makes a tremendous amount of sense for Target, especially if the event is going to be tied to fashion. But again, at the present time, I am sure it is simply for the buzz appeal.
Were Target to consider entering the UK market, they would have a very difficult time competing with Tesco, and gaining traction. Tesco is very similar to Target, and not only do they have a strong hold on the UK customer, there is also the issue of a lack of land to build a lot of free-standing Target stores.
Interesting that Target is building a pop up store at Selfridges, owned by Canada’s Galen Weston who also owns Loblaw’s and Holt Renfrew.
Although I also believe it’s just for buzz, it may also be to have some fun and fool people into speculating about Target’s potential expansion into Europe. I would be willing to bet that Target has something “baking” in Canada, with Mr. Weston as a partner of some sort.
I’m inclined to agree with the “buzz only” crowd on this point. The UK market is significantly different than the US, and it’s questionable that the niche Target occupies here is poorly served over there. Tesco is an extremely strong competitor, and does occupy a share of mind similar to Target’s in the US. The primary issue with Target expanding in the UK is that the US mass market big box retailer doesn’t exist there, and may not have validity.
On the other hand, continuing to cement their position as the chic store for upwardly mobile middle class shoppers fits perfectly for Target’s marketing strategy. From a merchandise point of view, Target has yet to be a sustained force in trendy apparel, and this may be the start of that effort.
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Hmm, we have “pop-up” stores in the UK and automated restaurants in Germany. This must be the “Jetsons’ European Vacation” week.
Anyway, back on topic, I find this move a bit confusing (something, no doubt, related to my fuzziness over the term itself). Although Selfridges describes – or at least described – itself as a “store of brands,” I don’t see how that idea can encompass a brand which is actually another retailer. Would a “store” made up of, say, Saks, Macy’s and Target “boutiques” make any sense? It sounds more like a shopping center than an actual store.
London Fashion Week gets great publicity back in the US. Target will get a decent return on their London publicity budget. If Target built a pop-up store during the Beijing Olympics, that would earn great publicity in the US, too. Target doesn’t have to build a store in the UK or China to make the publicity pay off. The pop-up stores just need places that have media clusters.
Creating a pop-up store aligned with fashion in a well-known and respected UK store is a great way to create buzz and begin to create a “fashion” image. It’s a great way to test the market without a permanent investment. Smart idea!
Target China, Target. What’s London got to do with anything remotely important in retail? What sort of buzz can be built in the U.K. besides the epic, never-ending angst about Diana’s death? Seriously, how can one take that society seriously? Everyone knows that Elvis is looking after Diana, so let’s move on, people! Places, everyone!
Target has used pop-up stores quite a bit and very successfully. Probably more retailers should consider them–or a variation.
As to overseas expansion, I’ve believed for quite a while that it’s inevitable. However, waiting 10 years in Target’s case is not feasible. Now is the time to be making a move or planning to. I’m willing to bet Target is doing just that.
Target is great at building buzz, and their history indicates that many times it is simply for buzz’s sake. A few years ago, Target rented a barge that was docked at Chelsea Pier in New York, and created a pop-up store for Christmas, featuring their top selling items. It was not placed there as a precursor to a New York store; it was simply executed to create great PR coverage, which they extensively received.
Selfridges is a great store that caters to the young affluent in London, and creates “happenings” on a regular basis. Partnering with this department store makes a tremendous amount of sense for Target, especially if the event is going to be tied to fashion. But again, at the present time, I am sure it is simply for the buzz appeal.
Were Target to consider entering the UK market, they would have a very difficult time competing with Tesco, and gaining traction. Tesco is very similar to Target, and not only do they have a strong hold on the UK customer, there is also the issue of a lack of land to build a lot of free-standing Target stores.
Interesting that Target is building a pop up store at Selfridges, owned by Canada’s Galen Weston who also owns Loblaw’s and Holt Renfrew.
Although I also believe it’s just for buzz, it may also be to have some fun and fool people into speculating about Target’s potential expansion into Europe. I would be willing to bet that Target has something “baking” in Canada, with Mr. Weston as a partner of some sort.
I’m inclined to agree with the “buzz only” crowd on this point. The UK market is significantly different than the US, and it’s questionable that the niche Target occupies here is poorly served over there. Tesco is an extremely strong competitor, and does occupy a share of mind similar to Target’s in the US. The primary issue with Target expanding in the UK is that the US mass market big box retailer doesn’t exist there, and may not have validity.
On the other hand, continuing to cement their position as the chic store for upwardly mobile middle class shoppers fits perfectly for Target’s marketing strategy. From a merchandise point of view, Target has yet to be a sustained force in trendy apparel, and this may be the start of that effort.