Target Overhauls Flagship With An Eye Toward Boosting Consumer Experiences

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Target is set to unveil the remodel of its Minneapolis flagship. The $10 million update is among the most extensive of the planned 600 location redesigns to take place over the next three years.

Most refreshed stores will require about $5 million in investment and the focus will be on customizing the design to the needs of shoppers in those areas. The cookie-cutter store model is gone, Target COO John Mulligan told the Minnesota Star Tribune.

Once it’s all said and done, Target expects a 2 percent to 4 percent increase in sales in each store.

As with all retailers these days, the Bull’s Eye is focused on delivering positive experiences, a mindset that led the remodels. In the past, experience accounted for about 5 percent of the store design. Today, it accounts for 20 percent of the overall plan, according to Joe Perdew, VP of store planning and design. For instance, instead of filling every available square foot with shelves of products, some upcoming stores will feature product vignettes where shoppers can see a head-to-toe outfit or a total room concept.

The store features more lifelike mannequins, a beauty department with video displays, and grocery and prepared meals in the front of the store.

[Read more about Target’s Q2 performance: Foot Traffic Propels Target’s Q2 Sales]

The new locations are also aiming to keep shoppers inside longer with a flow that places apparel at the center of the store with other departments wrapped around it. The chain also hopes the new lighting and wood treatments are more welcoming. Upbeat music is also designed to set the tone.

Target’s store focus is part of the company’s attempt to turn around foot traffic, which has been flagging. The retailer is also overhauling its private label collections in apparel and home products, edging out stale labels for more contemporary styles.

Target is hoping the store updates will put it one step ahead of rival Walmart, which is also slated to update 400 locations.

Walmart is taking a page from Apple Stores, with a more interactive selling environment. In electronics, this means consumers will be able to try out computers and gadgets before they commit. A similar tactic will be undertaken for products like baby strollers and tools. The updates will also include a boost to cosmetics as well as new signage, lighting and space in the produce aisles.

Walmart is also making a big omnichannel push by adding a variety of ways for consumers to click and collect. The mass merchant is moving pickup locations to the front of the stores, adding lounge areas where shoppers can wait for their items and providing curbside grocery pickup and pickup towers in select locations.

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