Target Tests Dollar Section

Mar 03, 2004
George Anderson

By George Anderson

It is one thing to be chic at cheap prices, but can Target still maintain its brand aura if it starts selling goods for a dollar?

It is going to find out as it test dollar sections merchandised as “The 1 Spot” at the front of 125 stores, reports Reuters.

The timing may be right for the retailer to make a limited move into dollar items as more affluent consumers are seeking bargains for a buck or less.

According to research by WSL Strategic Retail, 62 percent of women responding reported having shopped in a dollar store over a three-month period.

Eric Schiffer, president of 99 Cents Only Stores, said the market for dollar store goods is expanding because, “There is a general awareness that you can get good quality even at a low price.”

Moderator’s Comment: Does a section merchandising dollar
items fit with Target’s marketing of its stores?

Martin Bukoll, retail analyst with Northern Trust Co.
cautioned in a research report, “Like the seasoning of a fine meal, Target must
be careful to use just a pinch of the $1 store items or the corporation is likely
to have indigestion.”

According to the Reuters report, the store with “The 1
Spot” they visited included food items such as Jiffy Pop popcorn to a four-pack
of Eveready batteries.

The retailer has not released any test number results. 
Anderson – Moderator

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