September 1, 2015
Target plans bar in Chicago location
What once seemed like a violation of liquor ordinances is becoming increasingly popular. On the wave of consumer craft beer and cocktail connoisseurship, big grocery chains are installing in-store bars. Not only does allowing shoppers to drink while shopping imbue a grocer a little cosmopolitan flare, retailers like Whole Foods are no doubt finding that there is a quite practical reason to have a bar in-store — lower inhibitions on the part of customers mean more impulse purchases.
A recent retailer to get in on this trend, however, isn’t an upscale "natural" grocer like Whole Foods; in fact it’s not even strictly a grocer. Target may soon have its customers browsing through Merona shirts and Archer Farms foods while buzzed at one Chicago location.
According to the Chicago Tribune, Target has applied for a license to serve alcohol on the premises of its new store at Navy Pier, slated to open at the beginning of October. The location will be a smaller format Target, the first of its kind in Chicago. According to the Trib, the store will be one-fifth the size of a standard Target and will feature a Starbucks and a product selection geared toward neighborhood shoppers, emphasizing men’s and women’s apparel.
Image: Google street view of future Target, Navy Pier location
The development comes at a point when, according to Ad Age, Target’s CEO is planning to focus on four core areas: style, baby, kids’ clothes and toys, and wellness.
Offering customers the option to drink while shopping at one location does not immediately appear to be in keeping with this plan to focus on brand consistency, though at least one of the chain’s stores has doubled-down on its booze offerings. One can see, in Target’s Avondale, Chicago location, nearly an entire wall abutting the grocery section dedicated to packaged craft beer, liquor and wine.
Target has not indicated whether it intends to expand on-premises liquor sales and consumption beyond just the one Navy Pier location.
Others retailers outside of the high-end grocery space have also been making moves towards offering in-store alcohol. Kroger has announced that two of its Cincinnati locations will be installing beer taps and selling growlers filled with the on-tap beer, as well as hosting beer tastings. Wegmans has implemented a bar/restaurant called The Pub by Wegmans in one Virginia location, according to USA Today, and the Richmond Times-Dispatch indicates that a planned Wegmans location will also feature the bar/restaurant.
BrainTrust
Cathy Hotka
Principal, Cathy Hotka & Associates
Recent Discussions
Discussion Questions
What positives and negatives do you see in Target having an in-store bar at select locations? Do you see in-store bars as a better move for certain kinds of grocers vs. others?
Poll
Retailers are trying everything to attract and keep shoppers in their physical stores. Serving alcohol is certainly one way of achieving that goal but at what cost to the Target brand? This seems to be yet another attempt under the “just because you can, doesn’t mean you should” category.
Are they going to add the purchases to your loyalty card? Buy 10 gin and tonics and get the next one free?
It makes sense for retailers like Bass Pro Shops to add restaurants into their themed experience. I could even see Nordstrom adding a wine and cheese cafe, but adding a bar into a shopping environment like Target further deteriorates the brand and its supposed commitment to style, kids, clothes and wellness.
Once again the margins promised with alcohol probably trumped creativity, innovation and doing the right thing in the boardroom.
Bars are good for high-volume, fresh-food oriented grocers. Target is neither.
I’m with Adrian on this one. It seems that more and more retailers are getting into serving liquor in one way or another. While it may attract a few more upscale customers and get shoppers to linger, it does indicate that they may be running out of fresh ways to market what they really are — a mass-market retailer. Then there is the whole issue of DUIs and lawsuits. Seems to me like they’d be better off sticking to sandwiches, coffee and pastry — or something.
I’m having a hard time coming up with a consistent theme here. Diapers and daiquiris? Handbags and Heinekens? Just not sure these things go together.
The other question here is whether it’s a smart move in 2015 to try to keep customers in the store for a longer period of time, when all evidence seems to point toward a more efficient, app-fueled bomb-in-and-bomb-out trend. I don’t believe the trial will work, but Chicago’s touristy Navy Pier is the right place to start.
While I think this is wrong on so many levels, it would get more men to shop! I do see beer sales and wine tasting but full blown bars are another story. Customer, or should I say patron, restrooms would need to be installed in stores that have none for their customers. Is last call before or after all checkouts are closed? Are loyalty points and gas rewards given on certain beverages and/or cocktails?
Too much to consider, and why bother? It is not a good direction to go in for most grocers.
Target does not seem ideal for a pilot program. But then again, why not? I can see this easing the customer’s tendency to get in and out. Sales can increase because the mind is more relaxed after a few drinks making impulse buying decisions. It will be interesting to follow this and see where it might lead.
This is just a bad idea on so many levels. Shoppers need assistance, not alcohol.
Target isn’t who it thinks it is (or wishes it were). This new effort is a disconnect on brand identity. This is not brand building, it’s flailing. But of course that won’t stop other frightened retailers from doing the same.
I agree with the consensus opinion that this is a misbegotten idea. I understand that a store on Navy Pier (a major tourist destination in Chicago, perhaps less so among the “natives”) requires a different approach to merchandising, especially in a small format. But a location within a “festival” setting like Navy Pier, Ghirardelli Square or Faneuil Hall doesn’t mean that a retailer veers away from its overall brand image. This just feels off-Target to me.
First, keep in mind that Navy Pier is a very unique location for any retail outlet. The traffic is 75 percent tourist and 25 percent service people working there. And there are PLENTY of places to get a drink at Navy Pier. So this may just be Target’s way of trying to have a fighting chance with a “traditional” retail outlet there.
On the larger subject of alcohol and retailers — this is a much trickier subject than it seems. At least, once you get past Kroger refilling growlers which I would liken more to a coffee grinding station or a bottled water refill than a “bar.”
We worked pretty closely with Best Buy when they were rolling out their lifestyle store segmentation. They also experimented with a few very innovative spin-offs. One targeted their “Buzz” segment, young men who often said things in focus groups like “if Best Buy served beer I would just stay there and play games all day.”
The location they opened was a natural, housed in an old fire station in a trendy area of downtown Chicago. I thought the whole concept was a sure winner. Tech, games, funk, HDTV for event watching with “stadium chair” seating pods that could be reserved.
By now you have guessed “the rest of the story” (credits to the late Paul Harvey) — the thing lasted about six months. Turns out the site didn’t attract the other required component for holding young male attention — females. Game over.
Lesson? Alcohol is social. Grocery stores (and retailers in general) are not.
First things first, Target is not opening on Navy Pier. The location is nearby, but not in that tourist mecca.
Streeterville is an increasingly residential dense urban neighborhood in between Michigan Avenue, Chicago River and Lake Michigan. Mariano’s, Whole Foods and Eataly (all nearby) have changed grocery shopping experience expectations.
For singles or empty-nesters living in high-rise multiple family dwellings, the communal areas of those stores is now expected. This is grocery shopping without a car — it’s across the street!
As Cornell ramps up the grocery category, the proper experience needs to accompany the goods in the right location.
I have experienced this first hand at our local grocery stores, and I like the idea. It’s new enough that it makes the experience a little special. Imagine I say to my wife, “It’s date night. Let’s go to the grocery store and have a glass of wine while we pick out what we’re going to grill for dinner.” Guess what? They will probably sell me a bottle of wine to go with that steak I’m going to buy.
I don’t see the negative on Target having a bar. Like the grocery store, at some level it can add to the experience.
In all of these situations, including actual bars and restaurants, responsibility in drinking and serving is non-negotiable.
The article touched on the positives.
Adding alcohol builds the potential to make a store a destination for social, not just commercial, connections — think hook-ups on top of stock-ups.
As for the negatives?
Well, just check out any bar. The idea of shoppers pawing each other (whether consensual or not), arguing and/or fighting, or — shall we politely say — developing a nervous stomach over the deli case just isn’t that appealing.
In-store bars featuring limited lines of craft beers or other local products would seem better placed in a Whole Foods, Trader Joe’s kind of environment rather than a Kroger Superstore. In the end, I’d think a lot depends on the target demographics as well.
Negatives: monitoring the age limit, monitoring inappropriate behavior, liability for responsible drivers, etc.
Positives: retailers need to focus on making the shopping experience more attractive to consumers so this could be a good move. However, it needs to be in conjunction with the brand image. So how will the craft beer service add to the image of the sleek, fashionable image at a reasonable cost?
All retailers need to add whatever food or drink services that fit with their brand image and not make copycat moves.
Doesn’t fit Target’s current direction at all. I just don’t see the Target customer getting jazzed about going to Target for a drink and a shop.
But that’s just my 2 cents.
While I don’t see the negatives (other people here foresee) materializing, that’s largely because I don’t see this getting much use. And even if it “works”—however we might want to define that vague term—how many of these “select” locations does Target really have?
A nice PR move to (try to) convince people Target is still “hip,” but it does little to address their formidable issues with stocking, store saturation, etc.
The bar could end up being the “daddy day care” while the rest of the family shops. When I lived in Dallas, I remember Neiman Marcus at North Park had a bar inside the store (it was literally a building inside the store), a sports bar. When you go there on weekends, it is all men there with beer watching the game guarding shopping bags, and the wives would come in to pick up their husbands or drop off extra bags. It was an interesting sight. Right now some Targets in California have a large seating area with Starbucks and serves a similar function. In selected markets, I don’t see a problem putting a bar in there.
Date night at Target? Really? A worker’s lunchtime drink at Target before going back to the office with her sack of toothpaste and batteries? Really?
This is such a head scratchingly bad idea and so inconsistent with the wholesome family image of Target that Target has sought to front for themselves for years. The only redeeming thing is (as several other commenters have mentioned) that this particular location will have mostly neighborhood walk-ins and tourist walk-ins as opposed to drivers patronizing the store. I sincerely doubt this idea will be a keeper.
The ramifications of impaired drivers in a large high traffic parking lot may not have been considered closely enough. A short amount of time will tell how good of an idea this was for the company’s business and reputation.
Whole Foods does it!
As long as there is a tie in to the product in the store, then I think it is worth a try to differentiate oneself.
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Retailers are trying everything to attract and keep shoppers in their physical stores. Serving alcohol is certainly one way of achieving that goal but at what cost to the Target brand? This seems to be yet another attempt under the “just because you can, doesn’t mean you should” category.
Are they going to add the purchases to your loyalty card? Buy 10 gin and tonics and get the next one free?
It makes sense for retailers like Bass Pro Shops to add restaurants into their themed experience. I could even see Nordstrom adding a wine and cheese cafe, but adding a bar into a shopping environment like Target further deteriorates the brand and its supposed commitment to style, kids, clothes and wellness.
Once again the margins promised with alcohol probably trumped creativity, innovation and doing the right thing in the boardroom.
Bars are good for high-volume, fresh-food oriented grocers. Target is neither.
I’m with Adrian on this one. It seems that more and more retailers are getting into serving liquor in one way or another. While it may attract a few more upscale customers and get shoppers to linger, it does indicate that they may be running out of fresh ways to market what they really are — a mass-market retailer. Then there is the whole issue of DUIs and lawsuits. Seems to me like they’d be better off sticking to sandwiches, coffee and pastry — or something.
I’m having a hard time coming up with a consistent theme here. Diapers and daiquiris? Handbags and Heinekens? Just not sure these things go together.
The other question here is whether it’s a smart move in 2015 to try to keep customers in the store for a longer period of time, when all evidence seems to point toward a more efficient, app-fueled bomb-in-and-bomb-out trend. I don’t believe the trial will work, but Chicago’s touristy Navy Pier is the right place to start.
While I think this is wrong on so many levels, it would get more men to shop! I do see beer sales and wine tasting but full blown bars are another story. Customer, or should I say patron, restrooms would need to be installed in stores that have none for their customers. Is last call before or after all checkouts are closed? Are loyalty points and gas rewards given on certain beverages and/or cocktails?
Too much to consider, and why bother? It is not a good direction to go in for most grocers.
Target does not seem ideal for a pilot program. But then again, why not? I can see this easing the customer’s tendency to get in and out. Sales can increase because the mind is more relaxed after a few drinks making impulse buying decisions. It will be interesting to follow this and see where it might lead.
This is just a bad idea on so many levels. Shoppers need assistance, not alcohol.
Target isn’t who it thinks it is (or wishes it were). This new effort is a disconnect on brand identity. This is not brand building, it’s flailing. But of course that won’t stop other frightened retailers from doing the same.
I agree with the consensus opinion that this is a misbegotten idea. I understand that a store on Navy Pier (a major tourist destination in Chicago, perhaps less so among the “natives”) requires a different approach to merchandising, especially in a small format. But a location within a “festival” setting like Navy Pier, Ghirardelli Square or Faneuil Hall doesn’t mean that a retailer veers away from its overall brand image. This just feels off-Target to me.
First, keep in mind that Navy Pier is a very unique location for any retail outlet. The traffic is 75 percent tourist and 25 percent service people working there. And there are PLENTY of places to get a drink at Navy Pier. So this may just be Target’s way of trying to have a fighting chance with a “traditional” retail outlet there.
On the larger subject of alcohol and retailers — this is a much trickier subject than it seems. At least, once you get past Kroger refilling growlers which I would liken more to a coffee grinding station or a bottled water refill than a “bar.”
We worked pretty closely with Best Buy when they were rolling out their lifestyle store segmentation. They also experimented with a few very innovative spin-offs. One targeted their “Buzz” segment, young men who often said things in focus groups like “if Best Buy served beer I would just stay there and play games all day.”
The location they opened was a natural, housed in an old fire station in a trendy area of downtown Chicago. I thought the whole concept was a sure winner. Tech, games, funk, HDTV for event watching with “stadium chair” seating pods that could be reserved.
By now you have guessed “the rest of the story” (credits to the late Paul Harvey) — the thing lasted about six months. Turns out the site didn’t attract the other required component for holding young male attention — females. Game over.
Lesson? Alcohol is social. Grocery stores (and retailers in general) are not.
First things first, Target is not opening on Navy Pier. The location is nearby, but not in that tourist mecca.
Streeterville is an increasingly residential dense urban neighborhood in between Michigan Avenue, Chicago River and Lake Michigan. Mariano’s, Whole Foods and Eataly (all nearby) have changed grocery shopping experience expectations.
For singles or empty-nesters living in high-rise multiple family dwellings, the communal areas of those stores is now expected. This is grocery shopping without a car — it’s across the street!
As Cornell ramps up the grocery category, the proper experience needs to accompany the goods in the right location.
I have experienced this first hand at our local grocery stores, and I like the idea. It’s new enough that it makes the experience a little special. Imagine I say to my wife, “It’s date night. Let’s go to the grocery store and have a glass of wine while we pick out what we’re going to grill for dinner.” Guess what? They will probably sell me a bottle of wine to go with that steak I’m going to buy.
I don’t see the negative on Target having a bar. Like the grocery store, at some level it can add to the experience.
In all of these situations, including actual bars and restaurants, responsibility in drinking and serving is non-negotiable.
The article touched on the positives.
Adding alcohol builds the potential to make a store a destination for social, not just commercial, connections — think hook-ups on top of stock-ups.
As for the negatives?
Well, just check out any bar. The idea of shoppers pawing each other (whether consensual or not), arguing and/or fighting, or — shall we politely say — developing a nervous stomach over the deli case just isn’t that appealing.
In-store bars featuring limited lines of craft beers or other local products would seem better placed in a Whole Foods, Trader Joe’s kind of environment rather than a Kroger Superstore. In the end, I’d think a lot depends on the target demographics as well.
Negatives: monitoring the age limit, monitoring inappropriate behavior, liability for responsible drivers, etc.
Positives: retailers need to focus on making the shopping experience more attractive to consumers so this could be a good move. However, it needs to be in conjunction with the brand image. So how will the craft beer service add to the image of the sleek, fashionable image at a reasonable cost?
All retailers need to add whatever food or drink services that fit with their brand image and not make copycat moves.
Doesn’t fit Target’s current direction at all. I just don’t see the Target customer getting jazzed about going to Target for a drink and a shop.
But that’s just my 2 cents.
While I don’t see the negatives (other people here foresee) materializing, that’s largely because I don’t see this getting much use. And even if it “works”—however we might want to define that vague term—how many of these “select” locations does Target really have?
A nice PR move to (try to) convince people Target is still “hip,” but it does little to address their formidable issues with stocking, store saturation, etc.
The bar could end up being the “daddy day care” while the rest of the family shops. When I lived in Dallas, I remember Neiman Marcus at North Park had a bar inside the store (it was literally a building inside the store), a sports bar. When you go there on weekends, it is all men there with beer watching the game guarding shopping bags, and the wives would come in to pick up their husbands or drop off extra bags. It was an interesting sight. Right now some Targets in California have a large seating area with Starbucks and serves a similar function. In selected markets, I don’t see a problem putting a bar in there.
Date night at Target? Really? A worker’s lunchtime drink at Target before going back to the office with her sack of toothpaste and batteries? Really?
This is such a head scratchingly bad idea and so inconsistent with the wholesome family image of Target that Target has sought to front for themselves for years. The only redeeming thing is (as several other commenters have mentioned) that this particular location will have mostly neighborhood walk-ins and tourist walk-ins as opposed to drivers patronizing the store. I sincerely doubt this idea will be a keeper.
The ramifications of impaired drivers in a large high traffic parking lot may not have been considered closely enough. A short amount of time will tell how good of an idea this was for the company’s business and reputation.
Whole Foods does it!
As long as there is a tie in to the product in the store, then I think it is worth a try to differentiate oneself.