Target is looking to regain its luster ahead of the crucial holiday season with a new partnership with Gen Z-favorite jewelry brand Kendra Scott, offering customers access to an exclusive collection of earrings, bracelets, and more.
The collection, which will include more than 200 pieces, will be available online and in about 150 Target stores, with most items costing less than $40.
Target’s deal with Kendra Scott is the latest in a series of partnerships the retailer has struck with popular brands such as Apple, Disney, and Levi Strauss. In addition, it has also opened more than 250 Ulta Beauty shop-in-shops to drive foot traffic and engage new customers.
Its launch comes amidst a period of slowdown for Target’s business, which first took a hit from having the wrong merchandise in stores last year as shoppers began socializing again. More recently, Target has also been dealing with slowing demand for clothing, home decor, and other discretionary as consumers prioritize essentials over discretionary purchases amidst high inflation.
To top that off, the retailer has been the target of significant backlash for displaying Pride merchandise in its stores and an increase in theft — factors that have negatively impacted its sales and profit margins.
As its business continues to suffer from these challenges, the company has adjusted its forecast with comparable sales expected to drop to mid-single digits and earnings per share in the $7 and $8 range for the fiscal year.
During a call with analysts last month, Target’s CEO Brian Cornell mentioned that the retailer anticipates consumers to continue feeling financial pressure in the coming months due to the return of student loan payments, rising interest rates, and the higher cost of necessities.
However, Target has been successful in encouraging shoppers to include discretionary items like makeup and other beauty products in their purchases. Sales at its mini Ulta shops reportedly more than doubled in the fiscal second quarter, while sales of other beauty items posted double-digit gains compared to the previous year, Target’s Chief Growth Officer, Christina Hennington, said last month.
Photo credit: Kendra Scott