Game on in electronics

New gaming experiences, television displays and the arrival of Kindle are set to inject new vitality into Target’s electronics and entertainment offering and boost second-quarter results. The company said by June it would complete a process begun in April to remerchandise the electronics and entertainment department in all 1,740 stores to a new open layout that will provide a more convenient and enjoyable shopping experience.

Among the changes, the video game section is being expanded by 30%, with product organized by gaming platform and genre, with a majority of stores featuring learning centers with 4- inch HD touch screens and trial stations.

“The electronics and video game reinvention was designed with the wants and needs of our guests as our top priority. They’ve asked for additional product diversity and better access to games and information and our new layout offers them just that,” said Target SVP Mark Schindele.

The TV wall will featured an expanded offering of larger screen sizes and new LED models in addition to improved signage to more clearly highlight product features. Accessories will be merchandised below the TVs. In the digital imaging area, higher-end DSLR’s will be added to the mix, and in a major coup Target is the first brick-and-mortar retailer to offer Amazon.com Kindle when it becomes available on June 6. Heavy promotion of that item around launch time is likely to generate customer traffic to the electronics department just as the remerchandising efforts are finalized.

The announcement of sweeping changes to the electronics and entertainment department followed a similar announcement by Walmart last week regarding a wide range of efforts to improve product assortments and the store experience. In Target’s case, the changes are overdue given rapidly evolving technology, changing customer expectations and increased competition. Target executes the “expect more” aspect of its brand promise very well in the fashion area and more recently the “pay less” side of the equation with food and consumables. Now, the electronics and entertainment department is poised to deliver on both fronts.