October 10, 2024

Target Plans Mini-Stores, Including an Apple Expansion

A Target spokeswoman, Dustee Jenkins, described the tests as “expanded displays” of Apple products, but declined to say how the merchandise would be arranged or whether there would be Apple Store-like displays to showcase it.

Apple already has small stores within Best Buy locations, but enlarging its presence at Target would make the computer, phone and music brand more accessible to everyday shoppers who are not necessarily looking for electronics.

Target currently sells some Apple products, like iPads and iPods, but it does not sell Macintosh computers. Ms. Jenkins declined to comment on whether the test centers would include computers.

The announcement confirmed rumors reported by AppleInsider and other technology blogs late last week.

The Apple details came after Target described a separate program, called The Shops at Target, to open small boutiques in its stores. For the first round of the shops, which will open in May and run for six weeks, Target will showcase five local stores, like Polka Dog Bakery in Boston, which sells pet food and accessories, and The Webster in Miami, which sells clothing.

Target plans to sell about 400 exclusive items that the retailers created with Target’s guidance. Prices on the first round of items range from $1 to $159.99 for a pouf (a type of ottoman) from Privet House, a Connecticut-based home-goods retailer. Target plans to repeat the program in the fall, with a different set of stores, and continue it through at least 2013, Ms. Jenkins said.

Stores-within-a-store, with dedicated floor space and signs and shelves designed by a brand, have been a popular strategy for a while. Department stores have long had small boutiques for designers like Ralph Lauren or Chanel. J. C. Penney, a Target competitor, has made its stores-within-a-store — for Sephora, Call It Spring, MNG by Mango and other brands — a centerpiece of its strategy.

Target also said it would continue with its designer collaborations, in which fashion designers make a low-price line for Target. When the Missoni for Target line was introduced in September, the Target Web site crashed under the huge demand and it took months for some consumers to get their orders. The next collaboration, to be sold in February, is with Jason Wu.

Target made the announcement in the wake of disappointing holiday sales figures. Its December sales at stores open at least a year rose just 1.6 percent, compared with expectations of a 3.1 percent increase among analysts tracked by Thomson Reuters. And Target warned last week that its fourth-quarter profit would be lower than it had previously estimated.

Article source: http://feeds.nytimes.com/click.phdo?i=7516360bb01e2d33914d655df6f2fa5d