- Target said it has struck a long-term deal with Kendra Scott to carry exclusive collections of earrings, necklaces and more.
- The jewelry will debut online and at about 150 stores as Target gears up for the holidays.
- The cheap chic retailer has struggled with slower sales and public backlash in recent months.
Target said Tuesday that it has struck a deal with jeweler Kendra Scott to carry exclusive collections of earrings, bracelets and more, as it looks to get its sparkle back ahead of the key holiday season.
The cheap chic retailer has established a reputation for launching its own brands and dedicating parts of its stores to merchandise from well-recognized national names, such as Levi Strauss, Disney and Apple. It has mini Ulta Beauty shops inside of a growing number of its stores, too.
With the new deal, colorful jewelry designed by Kendra Scott for Target will be available online and at about 150 stores. The first collection of more than 200 items, which range between $15 and $60, will hit on Oct. 22, just as customers are putting holiday shopping lists together and snagging early gifts. Most items cost less than $40, Target said.
The big-box retailer declined to share the deal’s financial terms but described it as “a long-term strategic partnership.”
The past year and a half has brought a sharp dose of reality for Target, which thrived and gained market share during the Covid-19 pandemic. The retailer dealt with the fallout of having the wrong merchandise last year as shoppers went out and about again.
In more recent quarters, Target shoppers have pulled back on buying clothing, home decor and other discretionary items while they spend more on experiences and pay higher grocery bills because of inflation. The company also faced public backlash over its Pride merchandise collection, which dinged sales in its most recent quarter. It has also pointed to organized retail theft as a challenge weighing on profits.
Target cut its forecast in August. It said it now expects comparable sales to drop around mid single digits, and earnings per share to range between $7 and $8 for the full fiscal year.
Shares of Target have fallen nearly 18% this year, far behind the 17% gains of the S&P 500. The company’s stock hit a 52-week low in late August.
On a call with reporters last month, CEO Brian Cornell said Target expects consumers to feel pressured in the coming months because of the return of student loan payments, rising interest rates and the still higher cost of necessities.
Yet, Target has had luck getting shoppers to add some discretionary items to their baskets, such as makeup and other beauty items.
Sales at its mini Ulta shops in the fiscal second quarter more than doubled, and sales of other beauty items posted double-digit gains compared to a year ago, Target’s Chief Growth Officer Christina Hennington said last month.
That’s a formula Target wants to replicate in other categories such as jewelry.
Source: Business - cnbc.com
