Target, Inc.

The challenges of physical retail have inspired new concepts and new entrants to the supermarket business in America

Prime Day 2017 was Amazon’s biggest event yet. But the shopping marathon took a significant toll on brick-and-mortar traffic.   

Target is discontinuing its mobile Cartwheel Perks rewards program, but new app-based improvements are underway.   The discounter alerted shoppers participating across its five test markets via email that its “perks pilot is winding down.” Shoppers have until August 27, to collect points toward perks rewards, and all rewards must be redeemed by October 27, according to Target.  

Gen Z shoppers are gearing up to hit the stores for back-to-school purchases — and their top destination is Walmart.    Thirty-six percent of boys and girls cite Walmart as their first choice for back-to-school shopping, more than double that of any other retailer, according to a survey conducted by strategic retail advisory firm HRC Retail Advisory.    

An important demographic for many retailers appears to be staying home more these days.   In remarks at  Fortune’s Brainstorm Tech Conference in Aspen, Colorado, Target CEO Brian Cornell cited an 11% dip in shopping activity among Hispanic consumers in the past several months. (A Target spokesman said later he was referencing industrywide data from the NPD Group, The Star-Tribune reported.)   “There’s almost a cocooning factor,” Cornell said.  

The newest batch of start-ups are making their way to Minneapolis for the second annual Target + Techstars retail accelerator program.   After receiving applications from more than 3,000 technology start-ups — 70% of which had a co-founder who is either female or comes from an ethnically diverse background — Target whittled the list down to 10 finalists for this year’s tech accelerator. Companies range from online advertising to rebates to clothing alterations, and hail from Minneapolis to as far as Belgium.

A wholesale club giant beats out specialty retailers to rank as the nation's favorite home furnishings retailer.    Costco Wholesale Corp. is ranks first among consumers when it comes to home furnishings, according to a study by Market Force Information. With a composite loyalty score of 72%, Costco earned the top spot. But Ikea was a close second, with a score of 70%.    

Target Corp. on Thursday surprised the industry and investors with some good news.   The discounter updated its guidance and said that as a result of improved traffic and sales trends through the first two months of the quarter, it expects to report a modest increase in its second quarter same-store sales. Target previously said it expected a decline.   

WD Partners announced that Elaine Kleinschmidt has joined the firm's Columbus office as executive VP of strategy & experience design.     Kleinschmidt joins WD Partners from Big Red Rooster, where she most recently served as VP, digital experience leading work for brands like Macy's, Under Armour and Cabela's with a focus on innovation, omniexperience strategy, and digital engagement. Previously, Kleinschmidt held creative leadership positions at Tweenbrands, Resource Interactive, Target, and Victoria's Secret.

Amazon hasn't make it to the head of the class for this year's back-to-school shopping season.   Among young U.S. shoppers (ages 18-24), 64% said they will buy back-to-school items from Target and Walmart, respectively, edging out Amazon (50%). This is according to a new consumer survey from the retail app platform, Branding Brand.