Retailer Builds Cachet via Beauty Offerings, Women's Wear Daily, June 25, 2012
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WWD.COM 11 WWD MONDAY, JUNE 25, 2012 11 By MOLLY PRIOR THE LAST THING Target wants to be seen as is another big box, and it’s using beauty to telegraph that message loud and clear. Target’s efforts to transform its ap- proach to beauty got under way in ear- nest in 1999, when the retailer linked arms with makeup artist Sonia Kashuk to create an exclusive, premium cosmet- ics range for its stores. The collection has since grown into a full-scale beauty brand — complete with makeup brushes and cosmetics bags — that occupies a promi- nent position in the beauty department. It also signaled Target’s commitment to doing things a little bit differently than its mass-market competitors. “Target and Sonia shared a visionary idea to continuously deliver the most in- novative, affordable beauty products to a wider audience without compromising professional quality,” said José Barra, senior vice president of health care and beauty at Target. “Sonia’s brand remains a cornerstone of our beauty strategy.” He noted that Target’s partnerships have since expanded to include its ex- clusive Umberto Beverly Hills hair care collection and three prestige makeup col- lections, namely JK Jemma Kidd, NP Set and Pixi. And Target continues to build on its partnership with British retailer Boots, which has an assortment of products in all Target doors. In select units, Boots dis- plays are manned by beauty advisers. Beauty also plays a role in the retail- er’s latest partnership initiative, Shops at Target. The first phase, which launched May 6, included a bath and body collec- tion created with Aspen, Colo.-based beauty boutique Cos Bar. Target also occupies the value space with its private label brand, Up & up, which spans roughly 800 products in 40 categories, including beauty and per- sonal care. “This brand offers guests access to quality, well-designed products at a low price as an equal alternative to the national brand,” said Barra. “On the other hand, prestige quality exclusives like Sonia Kashuk Beauty, Boots and Umberto Beverly Hills help differentiate Target’s assortment from competitors. Guests have told us they want the brands and products that are most relevant to them, which includes a combination of prestige and national brands.” Barra said Target eschews a “one size fits all” approach, and looks for ways to cus- tomize the assortment. “We also take our segmentation efforts a step beyond com- mon attributes to layer in ‘attitudinal’ seg- mentation that captures guests’ mind-sets.” For instance, Target found that its “style savvy guests” are willing to trade up and splurge on certain beauty items, he said. Over the years, Target has shown an appetite and a nimbleness for experi- mentation. Despite its size, Target is constantly tinkering with the beauty as- sortment, clearing room for a big idea, expanding it if it works, and quickly mov- ing on if it doesn’t. For example, several years ago Target created a set of prestige skin care brands, some with price points well over $100. The test was shelved shortly after its launch. “Our merchant teams fine-tune our assortment to provide a wide range of product that is unique to Target. We continually focus on understanding our guests’ preferences to strike the right bal- ance between established and emerging brands,” said Barra. “It is a very fluid and dynamic process.” Target’s efforts to elevate the mass market beauty shopping experience have paid off. In its 2011 annual re- port, the company said beauty has be- come “one of the top growing catego- ries.” The report stated that Household Essentials, which includes beauty, per- sonal care, baby care, pharmacy and cleaning and paper products, accounted for 25 percent of sales in 2011. At the WWD Beauty CEO Summit in May, Barra noted, “We just train ourselves and our teams to recognize possibilities and turn them into opportunities. We must be comfortable with a permanent state of ambiguity.” In 2010, the retailer began rolling out a newly designed, more upscale shopping en- vironment called Destination Beauty, com- plete with custom-designed fixtures, shelf lighting, splashy graphics and interactive screens. By year’s end, Target will have out- fitted approximately 1,200 doors with the Destination Beauty concept — which is de- signed to court the cross-channel shopper. Wendy Liebmann, chief executive offi- cer of WSL Strategic Retail, said, “Target has felt very strongly that it needed a differ- ent kind of proposition than its traditional competition.” She credited Target for cu- rating its offering of mass market beauty brands with more-prestige-positioned lines, such as Sonia Kashuk. “It’s the right proposition for the right audience.” Retailer Builds Cachet Via Beauty Offerings Cos Bar is part of The Shops at Target.
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"Target has felt very strongly that it needed a different kind of proposition than its traditional competition.” Wendy Liebmann, CEO of WSL Strategic Retail, credited Target for curating its offering of mass market beauty brands with more-prestige-positioned lines, such as Sonia Kashuk. “It’s the right proposition for the right audience.”
Transcript of Retailer Builds Cachet via Beauty Offerings, Women's Wear Daily, June 25, 2012
WWD.COM
11WWD MONDAY, JUNE 25, 2012 11
By Molly Prior
THE lAST THiNG Target wants to be seen as is another big box, and it’s using beauty to telegraph that message loud and clear.
Target’s efforts to transform its ap-proach to beauty got under way in ear-nest in 1999, when the retailer linked arms with makeup artist Sonia Kashuk to create an exclusive, premium cosmet-ics range for its stores. The collection has since grown into a full-scale beauty brand — complete with makeup brushes and cosmetics bags — that occupies a promi-nent position in the beauty department. it also signaled Target’s commitment to doing things a little bit differently than its mass-market competitors.
“Target and Sonia shared a visionary idea to continuously deliver the most in-novative, affordable beauty products to a wider audience without compromising professional quality,” said José Barra, senior vice president of health care and beauty at Target. “Sonia’s brand remains a cornerstone of our beauty strategy.”
He noted that Target’s partnerships have since expanded to include its ex-clusive Umberto Beverly Hills hair care collection and three prestige makeup col-lections, namely JK Jemma Kidd, NP Set and Pixi. And Target continues to build on its partnership with British retailer Boots, which has an assortment of products in
all Target doors. in select units, Boots dis-plays are manned by beauty advisers.
Beauty also plays a role in the retail-er’s latest partnership initiative, Shops at Target. The first phase, which launched May 6, included a bath and body collec-tion created with Aspen, Colo.-based beauty boutique Cos Bar.
Target also occupies the value space with its private label brand, Up & up, which spans roughly 800 products in 40 categories, including beauty and per-sonal care.
“This brand offers guests access to quality, well-designed products at a low price as an equal alternative to the national brand,” said Barra. “on the other hand, prestige quality exclusives like Sonia Kashuk Beauty, Boots and Umberto Beverly Hills help differentiate Target’s assortment from competitors. Guests have told us they want the brands and products that are most relevant to them, which includes a combination of prestige and national brands.”
Barra said Target eschews a “one size fits all” approach, and looks for ways to cus-tomize the assortment. “We also take our segmentation efforts a step beyond com-mon attributes to layer in ‘attitudinal’ seg-mentation that captures guests’ mind-sets.” For instance, Target found that its “style savvy guests” are willing to trade up and splurge on certain beauty items, he said.
over the years, Target has shown an
appetite and a nimbleness for experi-mentation. Despite its size, Target is constantly tinkering with the beauty as-sortment, clearing room for a big idea, expanding it if it works, and quickly mov-ing on if it doesn’t. For example, several years ago Target created a set of prestige skin care brands, some with price points well over $100. The test was shelved shortly after its launch.
“our merchant teams fine-tune our assortment to provide a wide range of product that is unique to Target. We continually focus on understanding our guests’ preferences to strike the right bal-ance between established and emerging brands,” said Barra. “it is a very fluid and dynamic process.”
Target’s efforts to elevate the mass market beauty shopping experience have paid off. in its 2011 annual re-port, the company said beauty has be-come “one of the top growing catego-ries.” The report stated that Household Essentials, which includes beauty, per-sonal care, baby care, pharmacy and
cleaning and paper products, accounted for 25 percent of sales in 2011.
At the WWD Beauty CEo Summit in May, Barra noted, “We just train ourselves and our teams to recognize possibilities and turn them into opportunities. We must be comfortable with a permanent state of ambiguity.”
in 2010, the retailer began rolling out a newly designed, more upscale shopping en-vironment called Destination Beauty, com-plete with custom-designed fixtures, shelf lighting, splashy graphics and interactive screens. By year’s end, Target will have out-fitted approximately 1,200 doors with the Destination Beauty concept — which is de-signed to court the cross-channel shopper.
Wendy liebmann, chief executive offi-cer of WSl Strategic retail, said, “Target has felt very strongly that it needed a differ-ent kind of proposition than its traditional competition.” She credited Target for cu-rating its offering of mass market beauty brands with more-prestige-positioned lines, such as Sonia Kashuk. “it’s the right proposition for the right audience.”
Retailer Builds Cachet Via Beauty Offerings
Cos Bar is part of The Shops at Target.
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