Where Target is Failing

A recent article in the Wall Street Journal discusses problems Target is having with their brand identity. Are they a cheap retailer or are they a chic low cost store? How about they ask the consumer to explain what they have done wrong.

I used to love to go into Target and look around. But last year when I was unemployed I did some price comparisons and found they are not very good on prices.

Groceries: Target was anywhere from 5 to 25% higher on their prices compared to Walmart. I did not just spot check a few items. My list was over 150 items long and compared prices to Walmart, BJ’s, and Lowes’ Foods. Walmart beat out each retailer on just about every item except for the items I can buy in bulk at BJ’s. Bulk is a more expensive upfront cost but the unit price is cheaper. I also had enough information to know if using a coupon at Walmart was still cheaper than using the same coupon at Lowes’ where it is doubled. Another problem I found at the Target where I use in Brier Creek is many of the items on the shelf are expired! Yogurt is their worst offender.

Health and Beauty Items: Target still was more expensive with their health and beauty items but they do have a few Target brand items I like. The Target brand eye make up remover is very good compared to the Neutrogena. I tried the Walmart version in the past and it stung my eyes. Both for about the same price give or take a few pennies. Target brand make up remover cloths are very nice too. Again Walmart failed in this area. I also found with the Target brand multi-vitamins they are they only brand that do not make me vomit.

Clothing: Once in a while I still will surf through the clothing section at Target but maybe buy a handful of things a year. Where Target is failing here is their quality versus the prices is not very good. Their women’s Mossimo t-shirts are the same price as the ones from Ann Taylor Loft’s when they are on sale. Ann Taylor’s quality is far better. Their swimwear is the same price as swimwear in Victoria’s Secret. I cannot compare Walmart’s section because I do not ever visit their clothing area.

When I look for a cheap cute dress Target is the last place I go. My normal stops for clothing are Kohl’s, Ann Taylor Loft, Ross, and Macy’s. For a brand loyal customer like me Target’s prices will have to be incredibly lower or extremely cute for me to even consider buying clothes from Target.

Oh, if you are a Kohl’s shopper and ever pay full price for anything in their store you need to be added to Anderson Cooper ridiculous list. Everything in their store will go on sale at some point in time.

House wares: By far the worst section in Target. Most of their items are rarely ever on sale and you can find the same item at Kohl’s. Kohl’s may have the same item priced higher BUT Kohl’s always puts things on sale and if you are a great customer like I am, I receive coupons all the time for 10-30% off above and beyond the sale price. Kohl’s comes out to be a better deal. Same goes for Kohl’s versus Walmart.

Black Friday: Ever stop into Target on Black Friday? Well don’t bother. While other retailers are offering anywhere from 30-60% off Christmas décor Target is normally only offering 10%.

Pharmacy: The only place I still stop at in Target. The only reason I go to this pharmacy is because once a month Target has a $10 gift card on new prescriptions. I then use that gift card to buy items that are on sale or buy my eye make up remover and facial cloths.

Electronics: Another place I do not even bother with. HH Gregg and Best Buy are only a mile from the Target I shop at. They have better prices, more options, and better quality.

Credit Card: Target offers 5% off all purchases used with their Target credit card. I am not a fan of store credit cards but do have a Kohl’s and Macy’s card because the rewards are so amazing – of course I pay it off every month. Why in the world would I have a Target credit card to only save 5%? Kohl’s goes up to 30% on their cards depending on the timing. My Macy’s card I get 20% off and $20 off a $50 purchase every month! Target is failing with their credit card perks. A 5% savings using their card is not justified when their groceries are 5-25% higher than Walmart.

Bottom line for me: Target used to be a great place to shop. Then, as stated in the article, their strategies started confusing consumers. Prices went up while quality remained neutral, and their savings programs do not even compare to other retailers. My few suggestions for Target: (1) lower their prices to Walmart’s level or even lower, (2) match the quality of the clothing to the price, meaning lower the price of the cloths, (3) bigger sales, and (4) better credit card rewards. Their profits per item may sink but if people buy more because of lower prices their overall profits increase, therefore, putting them back in steady competition with other retailers.

http://finance.yahoo.com/family-home/article/112885/target-retailer-cachet-wsj