Target has transformed its store in New York’s SoHo district into a unique concept store. Inside an area that resembles the company’s Bullseye logo, the company presents “The Drop,” a rotating display of seasonal styles and curated items.
Courtesy of Target
In one of New York’s most fashion-forward neighborhoods, Target unveils its latest effort to follow trends and lead the way in style.
The Minneapolis-based retailer, which is in the midst of a turnaround effort and about to change CEOs, has revamped its SoHo big-box store at 600 Broadway.
The one-of-a-kind concept store, which opens Tuesday, will feature rotating merchandise, curated displays by celebrities and influencers, and other types of special programming, said Cara Sylvester, director of customer experience.
The SoHo store is part of a broader initiative by new CEO Michael Fiddelke to reclaim Target’s reputation for style and curated products. When he was named Target’s next leader in August, he said it would be one of his top three priorities, along with improving the customer experience and deploying technology to make Target faster and more efficient. He will take office in February, succeeding long-time CEO Brian Cornell.
Target is trying to return to growth after about four years of stagnant annual sales due to self-inflicted challenges and a tougher economy. Store traffic and sales fell as shoppers reacted to more unkempt stores, out-of-stock and locked items, and the company’s decision to roll back its major diversity, equity and inclusion programs. Consumers across the country have also become more selective in purchasing discretionary products, which has long been Target’s sweet spot, as they pay more for necessities like groceries, electricity and housing.
At an event showcasing the store Monday evening, Fiddelke described the SoHo location as “a punctuation point” for Target’s sense of style and its plans for the future.
In an interview with CNBC, Sylvester said the store’s merchandise has completely changed. The store, which opened about seven years ago, attracted many shoppers and had strong sales, but primarily sold items found at drugstores and convenience stores, she said. It contained no clothing or home decor from Target, which seemed both out of step with the neighborhood and like a missed opportunity for Target, she said.
“We said, ‘This is the capital of style and fashion. We have to be able to present the best,'” she said, recalling the inspiration for the project.
From start to finish, the store’s redesign took four months as the company rushed to complete the project before the holidays, Sylvester said. The company redid the first floor of the store and plans to remodel the basement in the coming year, she added.
The SoHo store reopens at a time when holiday shoppers and tourists are flocking to the main shopping district for holiday gifts and party outfits — and as Target continues sales across the country during the critical shopping season. It’s one of 42 stores the retailer has in New York and nearly 2,000 in the United States.
“The world is watching New York to see what’s new and what’s next,” Sylvester said during his remarks at the launch event. “And we want them to look at Target when they see what’s new and what’s next.”
A look at the Target store in SoHo
Inside a merchandise area that resembles Target’s Bullseye logo, the store will feature rotating merchandise organized around a theme.
Melissa Repko, CNBC
When customers enter the Target store in SoHo, they enter a long red hallway that resembles the inside of Target’s Bullseye logo. The area of the store is called “The Drop” and Target will display products there chosen around themes that seem relevant to the time of year, Sylvester said.
Like most stores, the rotation area will be replaced about every four to six weeks, she added.
As the store opens, The Drop has a holiday theme, including outfits and items a shopper may need for going out, lounging at home or giving a gift to a party host. The store’s displays span all categories, mixing clothing, home decor, beauty items and much more. For example, The Drop currently includes a table of products a shopper might want if they’re hosting a party at home with friends, like card games, espresso martini mix, and eye-catching glasses for cocktails.
Sylvester said the company’s marketers are already working on The Drop’s next two themes, which will focus on wellness in January, the New Year’s resolution season and Valentine’s Day in February.
The Target store in SoHo has an eye-catching “Beauty Bar” that showcases perfumes, makeup and more.
Courtesy of Target
Customers can enter Target’s “Broadway Beauty Bar,” designed for selfies and social media posts. It will feature a rotating assortment of Target beauty products, including fragrance brands like Fine’ry that are exclusive to Target, and trendy mini versions of facial cleansers, lip glosses and more from national brands.
At the launch, Target is featuring items curated by celebrity makeup artist Katie Jane Hughes.
In addition to the “Beauty Bar,” the store sells items typically found at big-box retailers, including large shampoos, body washes and cotton balls.
Near the beauty area, shoppers can also press a button and take a black-and-white selfie.
Although the store’s layout is new, it shares a similarity with some other Target locations in New York: Some items are locked behind eyeglass cases that an employee must open.
Target will tap celebrities and influencers to choose their favorite Target items for its “Curated By” display.
Courtesy of Target
At the rear of the store’s first floor, Target will feature a rotating “Curated By” display of items from the retailer’s beauty, fashion and home categories, chosen by celebrities and other designers known for their sense of style. Shoppers can browse and purchase that person’s favorites or scan a QR code to see a list.
Target’s first Curated By features favorites from Megan Stalter, an actress and comedian who appears on HBO’s “Hacks.” Some of her choices include a throw pillow, a pair of hot pink slippers, metallic water bottles and clothing themed to Universal’s “Wicked: For Good” movie.
Inside the “Gift Gondola,” Target will feature exclusive products like plush toys from its toy brand, Gigglescape, and items themed after its dog mascot, Bullseye, like special-edition Haribo candies.
Courtesy of Target
Also in the store, shoppers can find Target’s “Gifting Gondola,” which features Target-exclusive merchandise.
Currently, the exhibit includes stuffed penguins, bears and other holiday-themed products from Target’s toy brand, Gigglescape. It also includes gift items themed around the retailer’s bull terrier, Bullseye, including special edition Haribo gummy candies and a Bullseye Pez dispenser.
Over time, Sylvester said Target may introduce certain items that are unique to the SoHo store and can only be purchased there.
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