Target wants to create an in-store shopping experience that can compete with the increasing convenience of delivery.
According to Christina Hennington, Target’s chief strategy and growth officer, it is crucial for the retail giant to keep improving upon its physical space so that going to the store is as appealing as advancements in delivery from competitors like Walmart and Amazon, which provide delivery services for similar prices.
A recent slowdown in discretionary spending from consumers has also resulted in a downturn in in-person shopping across the board, including at Target.
“When things can show up on your doorstep the next day, what’s the reason for going into a store?’” Hennington said during the Lead Innovation Summit in New York City on Wednesday. “Because it’s super convenient.”
To that point, she added that if a customer needs an item quickly, Target wants to make the experience “pleasant and enjoyable.” It also gives shoppers the opportunity to get support and services, which “enlivens the senses and eludes discovery in a different way.”
“Experiential retail is critical for relevance in the future,” Hennington said.
In the food delivery wars, companies like Grubhub are landing partnerships with major retailers, including Amazon, Starbucks and Alberstons. In Target’s case, the company works solely with Shipt to fulfill its orders, which are currently only available to 80% of the U.S.
Nonetheless, Target has been trying hard to capture the attention of consumers. In late June, the retailer said it would partner with Shopify as it looked to make its online marketplace a trendier place to shop. Earlier this week, Target Circle Week was launched as it looked to fend off Walmart’s Deals week and Amazon’s Prime Day.
In the inflation economy, where shoppers are flooded with bargains, partnerships are a major way Target hopes to leverage its retail experience.
Target’s Hennington said partnerships with companies such as Starbucks and Ulta have allowed it to reach consumers in search of items Target is not necessarily known for, including quick service coffee and make-up. The company has been doing partnerships for roughly 25 years.
But not all partnerships work out, Hennington noted, saying that it comes down to what demand there is from consumers in the market and whether the partnership stands to be short, long, and most importantly, successful.
“But you can rest assured that we’re always looking for the next new partnership that’s going to serve our guests,” Hennington said.