Here we are, a day late with Part 2 of our three-part series on Target’s business and marketing strategies for 2013. (See Part 1 here.) As a reminder, the underlying theme of this series is the advantage a strategist gets from reading a company’s quarterly earnings transcript.
It would be a definite advantage if you took a look at an article on Ad Age yesterday, in which some daft woman recommended that bricks and mortar retailers institute a Black Friday EVERY DAY so they can survive. Target’s recent earnings call reveals such advice as idiotic (unless a retailer was looking to go out of business as quickly as possible).
“Whoa,” you might say, “didn’t Target just announce it would 'match any price' - even of some online retailers (read: Amazon)? Isn’t that an indication it will take the daily-Black-Friday race to the bottom?"
Yes. And no. Dig this part of the earnings transcript:
“…that [price match] is such a very low portion of the total transactions…”
Stunner, eh? To think that very few customers, according to Target, actually force the issue on price at the register.
So, there goes your “showrooming” bullsh&t right with it. But we’re not done. Here was a bonus “showroom killer” comment:
“…following the launch of free wireless in all of our stores in the fourth quarter, Target.com was, by far, the site most commonly accessed by guests while they were shopping in our stores.”
Ponder that one, showroomers. Not Amazon.com. Not BigAssDealOfTheDay.com. Target.com
Better yet, Target understands the in-store experience is, will, and has to be, its competitive advantage over Amazon, et al. Again, to the earnings transcript we turn:
“…[we are] ending our current relationship with Radio Shack in our mobile phone business, and begin working with Brightstar…as our new in-store labor partner; demonstrates our continued commitment to mobile as a key element of our electronics offering, and we believe it will enhance Target’s position in the wireless retail marketplace.”
How come people don’t buy their new smartphones online? Where’s the showrooming there? Why aren’t we reading about “The End Of The Apple Store”? Ha. F&cking. Ha.
And even more:
“…last October we launched a test with Geek Squad to provide in-store service agents in 20 Denver Target stores. Based on positive feedback from our guests, Target expanded this test by offering Geek Squad service and replacement plans in 20 stores in Kansas City beginning February 17.”
Genius! Target takes the only thing Best Buy has going for it!