Target lowers ‘thousands’ of prices
The price wars among the nation’s leading retailers has taken a new turn just ahead of the critical holiday selling season.
On Friday, Target revealed in a blog post on its website that it had lowered prices on “thousands” of items, from cereal and paper towels to baby formula, razors, bath tissue and more. The discounter said the move would help end shoppers’ uncertainty over the timing of discounts on certain products, and make for “more consistent savings.”
In line with the price cuts, Target has eliminated more than two-thirds of its price and offer call-outs. But the chain emphasized it is not ditching promotions entirely. Instead, it wants to make sure it offers only its “most compelling sales — when it makes the most sense for our guests.”
“We want our guests to feel a sense of satisfaction every time they shop at Target,” Mark Tritton, Target’s executive VP and chief merchandising officer said in the blog. “Part of that is removing the guesswork to ensure they feel confident they’re getting a great, low price every day. We’ve spent months looking at our entire assortment, with a focus on offering the right price every day and simplifying our marketing to make great, low prices easy to spot, all while maintaining sales we know are meaningful to guests.”
In its post, Target did not specify the percentage of the price cuts.
Trending Store: Beauty Story, New York City
There's a new story at Story — the innovative retail outpost in downtown Manhattan that totally reinvents itself every couple of months — and this time it's all about beauty.
Story has partnered with global beauty giant Coty to transform the space into a beauty lover's paradise. Beauty Story showcases Coty's Covergirl, Clairol, Sally Hansen and Rimmel brands along with an array of cutting-edge and lesser known ones. (According to a report by WWD, a typical sponsorship at Story costs $500,000 and holiday concepts cost $1 million.)
Shoppers at Beauty Story can virtually try on and share the latest makeup looks from Coty looks via an app (Perfect Corp.'s YouCam AR Makeup Mirror). The space includes a prestige beauty section conceptualized by Space NK founder Nicky Kinnaird, an outpost of cult Manhattan salon Hayday offering 30-minute custom facials, complimentary skin consultations and related products, and a Sally Hansen DIY nail bar where customers can try out new looks.
Bold wall displays (by Instagram artist Adam Hillman) form a colorful backdrop for the featured merchandise. There are several displays or activations that encourage interaction, and even rewarding it with complimentary products. A Vengo Labs digital vending machine, for instance, dispenses a complimentary Rimmel product for guests who pose for a photo against the in-store backdrop.
Beauty Story will be open through October 8. During that time, it will host various events, including makeup tutorials and touchups, and a Business of Beauty session featuring Kinnaird, who will discuss trends, insights and lessons about the current state of the beauty industry.
Founded by Rachel Shechtman, Story takes the editorial viewpoint of a magazine, and changes its merchandise and theme similar to a gallery.
Gymboree to exit bankruptcy
Children’s apparel retailer Gymboree Corp. will exit Chapter 11 bankruptcy as a going concern — and with a reduced footprint.
The children's apparel retailer won court approval to exit bankruptcy with a reorganization plan that includes a comprehensive recapitalization that will eliminate about $1 billion in debt. It expects to complete its financial restructuring process and emerge from Chapter 11 by the end of the month.
Gymboree filed for Chapter 11 bankruptcy in June 2017. According to court filings, the company plans to close 330 underperforming stores. Post-bankruptcy, it will have a $225 million credit facility, a $48.5 million exit asset-backed term loan replacement facility and a $35 million exit term loan facility.
"We are very pleased with the Court's approval of our plan, which marks a major milestone in Gymboree's restructuring process and facilitates a path forward to our emergence as a stronger and more competitive organization," said Daniel Griesemer, president and CEO of Gymboree. "While there is still work ahead to complete the process, we are excited about the future opportunities for Gymboree as we continue to transform the business."
As of April 29, 2017, the Company operated a total of 1,281 retail stores: 582 Gymboree stores (532 in the United States, 49 in Canada and one in Puerto Rico), 172 Gymboree Outlet stores (171 in the United States and one in Puerto Rico), 149 Janie and Jack shops (148 in the United States and one in Puerto Rico) and 378 Crazy 8 stores in the United States.