Target to repurchase up to $5 billion in shares
Minneapolis — Target Corp. said Thursday it will buy back up to $5 billion in shares under a new stock repurchase program.
The current $10 billion program is slated for completion in the next few months, said Target. The newly announced $5 billion program is expected to be completed in the next two to three years.
Target gives small shops mass appeal
Target is bringing the experience of small, independent shops to the masses with its next design partnership, “The Shops at Target.”
Launching May 16 for a six-week run in all Target stores and online, “The Shops at Target” will provide customers with the feel of visiting some of the world’s most unique boutiques without having to travel beyond their nearest Target store.
The series will begin with five U.S. specialty stores: The Candy Store, a candy boutique from San Francisco; Cos Bar, an Aspen-based high-end makeup, perfume and personal care store, Polka Dog Bakery; a dog bakery from Boston; Privet House, a Connecticut-based home design store; and The Webster, a Miami-based fashion store. According to a Target press release, the collections will include nearly 400 exclusive products ranging in price from $1 to $159.99. (Click here to view a video describing each store and its partnership with Target.)
“One of the reasons our guests love shopping at Target is our design partnerships. They create excitement and leave even the most loyal Target shoppers wondering what we’ll do next,” said, Brian Robinson, director of fashion and design partnerships, in a press statement. “With The Shops at Target, we’re building on that sense of discovery by offering our guests a chance to experience one-of-a-kind specialty stores and boutiques through collections that have been specifically tailored to their wants and needs.”
Robinson noted at a press event Thursday that Target purposefully focused on shops outside of New York City and Los Angeles in order to bring lesser-known shops to Target’s customers.
Rather than trying to change the stores’ to fit Target’s model, or redesigning Target to fit the stores, Target said it worked with the owners to create store-within-a-store concepts that capture the essence of the boutiques without compromising Target’s sensibilities.
This sentiment was echoed by Polka Dog Bakery co-owner Rober Van Sickle, who told Retailing Today that “working with Target was a very collaborative process, and (he and and co-owner Deb Gregg) were allowed to do what they wanted with the store.” A freedom, Van Sickle noted, not often allotted with other big-box partnerships.
According to Robinson, this level of cooperation was key to making the design series “an utter celebration of these shops,” and giving the owners the chance to bring their signature store experience to Target customers.
For The Candy Store owners, Diane and Brian Campbell, this means eliciting that feeling of nostalgia when customers see their favorite childhood treats. Diane Campbell said she wants visitors to her Target store to feel like a kid in a candy store, and believes people will react with pure joy.
As with its other design partnerships, Target expects “The Shops” to deliver spikes in demand on its website. Stacia Andersen, SVP merchandising for home, assured press that the retailer’s Web team is in place and that they learned a great deal from the unprecedented popularity of its Missoni collection.
Holiday promotions lead to lower outlook at Williams-Sonoma
SAN FRANCISCO — Williams-Sonoma Inc. said Thursday it has cut its fiscal Q4 earnings outlook below Wall Street expectations due to heavy holiday promotions levels.
The company said it had to offer discounts to entice shoppers this holiday season. Although earnings guidance has been reduced to below expectations, Williams-Sonoma’s revenue outlook remains in line with Wall Street, trimmed to a range of $1.24 billion to $1.26 billion. The company had previously expected revenue as high as $1.27 billion.
In the eight weeks that ended on Dec. 25, Williams-Sonoma’s revenue rose 4.2% to $901 million. Revenue from the company’s websites, catalogs and same-store sales rose 4.9%, compared with 11.3% growth in the prior year.
Laura Alber, president and CEO said, “Looking forward to fiscal 2012, we remain committed to the fundamental strategies that drove ourrecord earnings performance in fiscal 2011 and allowed us to gain market share, invest in future growth and improvecompany-wide profitability. These strategies include attracting new customers to our brands, filling ‘white space’ inthe marketplace by expanding our merchandise categories, and capitalizing on the world-class service thatdistinguishes our brands from the competition. These strategies also include continuing to drive efficiencies in ourglobal supply chain and expanding our initiatives in e-commerce."