Target Serves Up a Host of Holiday Savings

Target made good on its low-price image during the 2011 holiday season by offering plenty of discounts through a lineup of sales events.Toys were a major focus, with the retailer promising in a season-launching statement discounts on more than 2,000 popular national brands including Lego Group’s flagship, Hasbro’s Nerf and Mattel Inc.’s Barbie, as well as exclusive products from Mattel’s Monster High, Walt Disney’s Cars 2 (see “Target Visits Cars Land” in Related Articles) and MGA Entertainment’s Lalaloopsy, among others.In October, Target issued a list of “Top Toys” that included Mattel’s Fijit friends and LeapFrog Enterprises' LeapPad.Lego’s Ninjago and Mattel’s Barbie were among the brands earning dedicated endcaps. Other toys were grouped on “Top Toys” endcaps also carrying shelf trays distributing an expanded toy catalog that rolled out on Nov. 1. Featuring eight more pages than the 2011 version, along with a coupon insert with roughly $200 in offers, the catalog featured list-building tools (in typical Target fashion) such as checkboxes next to every item and a tear-out list for kids to complete. Also distributed on sidekicks and online, the catalog was promoted in the chain’s Oct. 30 circular.Later, a “25 Days of Toys” effort running Nov. 30 through Christmas Eve presented one "must have" toy each day at a deep discount. Supporting circular features contained a QR code that let consumers sign up for the deal (which they could also do by text message). The daily item was merchandised on a dedicated “Deal of the Day” endcap.Meanwhile, a “Big Toy Event” from Dec. 4-10 dangled “buy one, get one 50% off” deals on purchases of Mattel’s Fisher-Price Little People and Barbie, Disney’s Disney Princess and Cars 2, Nerf, HIT Entertainment’s Thomas & Friends, and Lego City. Emails and circular features supported.In addition to toys, thousands of electronics, home goods, apparel and accessories were highlighted with a series of special sales, including:an “Almost Last Minute Sale” running Dec. 8-10 that dangled discounts and store gift cards with qualifying purchases. Target dropped an extra eight-page circular on Dec. 8 to detail the offers, which encompassed brands such as Sony and private labels Merona and Mossimo. Online and mobile ads (the latter running within Pandora’s iPhone application) supported. Emails linked to a printable coupon delivering a $10 Target card with $50 in-store purchase.“Black Friday-like” discounts of up to 40% from Dec. 16-17. Shoppers who spent at least $75 from 5 p.m. on Dec. 16 to noon on Dec. 17 earned a $10 store card. Emails supported.the annual Black Friday “2-Day Sale.” (See "Target Takes Liberties with Black Friday" in Related Articles.)a “4-Day Sale” featuring pre-Black Friday deals from Nov. 20-23. An oversized circular in Nov. 20 newspapers plugged various offers and delivered more than $100 in coupons that were also available online. Regional radio spots supported. In stores, endcaps merchandising discounted items carried dedicated headers.A “Santa has elves, you have Target” message played out across media advertising, which included 15-second TV spots and online videos for Garmin. The chain partnered with other electronics brands such as Panasonic, Nikon (which earned a dedicated endcap in stores) and Microsoft for co-op online display ads. Meanwhile, American Greetings, Kraft Foods, Nestlé-Purina, Coca-Cola Co., Hot Wheels and Barbie, among others, secured dedicated holiday pages within Target.com.Throughout the holidays, the retailer also plugged free shipping, its existing price-match policy (which matches lower locally advertised prices by competitors during their promotional windows within seven days of a purchase) and the 5% back earned by REDcard Rewards members as additional ways to save.In stores, ceiling signs wished consumers “Merry Christmas” at entrances (Chanukah items received a dedicated endcap), and multiple headers identified products as “On the Get List.” Some rack signs plugged “Ready-to-Give Gifts” and identified price points such as $10. Sweaters in particular were spotlighted with “Sweater Shop” messaging that also appeared in print ads in magazines such as Conde Nast Publications’ Lucky. Seasonal departments were stocked with holiday decorations and candy, the latter including a dedicated endcap for Godiva Chocolatier SKUs.Elsewhere in stores, Yankee Candle and Clorox Co.’s Burt’s Bees also earned seasonal endcaps, while mobile floorstands cross-merchandised batteries from Procter & Gamble's Duracell and Energizer Holding's flagship brand. Early in the season, “Happy Thanksgiving” headers in food departments decorated endcaps and displays merchandising baking staples and other products. An “Eat, Save and Be Merry” sampling program on Dec. 11 handed out such goodies as private-label Archer Farms hot cocoa and Starbucks coffee. (The message was also printed on headers above fresh-food displays and coolers.) Sampling stations distributed coupon booklets containing more than $23 in savings. (See Related Promotional Activity.)The discounts continued post-holiday, when the chain announced savings of up to 50% on women’s and kids’ apparel, home goods and holiday decor beginning Dec. 26 as a way to incentivize gift card purchases. Meanwhile, email blasts sent on Dec. 25 promised $10 off online purchases of $50 made the same day. A Dec. 26 blast pushed the discounting even further by dangling up to 65% off online purchases.All the sales weren’t enough to stop the chain from reporting softer-than-expected holiday sales, however. In the five weeks ended Dec. 31, 2011, sales increased 2.6 % to $10.1 billion, as same-store sales increased 1.6%.“December sales were below our expectations as growth in grocery and beauty offset softness in electronics and music, movies and books,” chief executive officer Gregg Steinhafel said in a media release. “Sales and traffic were strongest in the week leading up to Christmas as guests waited to shop for last-minute gifts.”

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