Shoppers will soon see Kendra Scott-designed jewelry in approximately 150 Target stores. Most items will be under $40.
Goal
Target announced Tuesday that it has signed a deal with jeweler Kendra Scott to carry exclusive collections of earrings, bracelets and more as it looks to rejuvenate ahead of the all-important holiday season.
The budget-chic retailer has developed a reputation for launching its own brands and devoting portions of its stores to goods from well-known national names like Levi Strauss, Disney and Apple. Mini Ulta Beauty stores are also available in more and more stores.
With the new deal, colorful jewelry designed by Kendra Scott for Target will be available online and in about 150 stores. The first collection, with more than 200 items ranging in price from $15 to $60, will be available on October 22 – just as customers are putting together holiday shopping lists and securing early gifts. Most items cost less than $40, Target said.
The major retailer declined to share financial terms of the deal but described it as “a long-term strategic partnership.”
The first Kendra Scott collection will hit Target shelves in late October.
Goal
The last year and a half has brought a sharp dose of reality for Target, which thrived and gained market share during the pandemic. The retailer had to deal with the fallout from the wrong stock last year as shoppers were once again on the move.
In recent quarters, Target shoppers have cut back on purchases of clothing, home decor and other necessities while spending more on experiences and paying higher grocery bills due to inflation. The company also faced public criticism over its Pride merchandise collection, which led to declining sales in the most recent quarter. It also noted that organized retail theft is a challenge that is negatively impacting profits.
Target lowered its forecast in August. It said it Now the company expects full-year comparable sales declines in the mid-single digits and earnings per share of between $7 and $8.
Target’s shares have fallen nearly 18% this year, well below the 17% gains of the S&P 500. The company’s stock hit a 52-week low in late August.
In a call with reporters last month, CEO Brian Cornell said Target expects consumers to be squeezed in the coming months due to the return of student loan payments, rising interest rates and the still-higher cost of essentials.
Still, Target had luck getting shoppers to add some necessities to their shopping cart: makeup and other beauty items.
Sales at mini-Ulta stores more than doubled in the fiscal second quarter, and sales of other beauty items posted double-digit gains compared to a year ago, Christina Hennington, Target’s chief growth officer, said last month.
That’s a formula it wants to replicate in other categories like jewelry.