Skip to main content

Target-ing tabletop in seasonal merch

6/23/2008

Once, tabletop was its own little world, but in today’s lifestyle-oriented mass market, it is often merchandised as an element in a broader theme. In the new Cynthia Rowley sets at Target, tabletop isn’t so much a segment as it is a piece in a montage.

When it was launched in April, Target promised that the Rowley Whim collection would make it easy to engage in summertime activities at a moment’s notice, but with a little style. Target promised the line would be colorful and easy to coordinate. What it didn’t say was how easily the merchandising would make assembling the various elements to the task at hand.

In store, a dedicated, clearly-signed section has aisles designed to help consumers organize a day at the beach, a picnic or a barbecue. Towels and coolers—even cocktail mixes for passion fruit mojitos and Brazilian caipirinha—are important parts of the presentations, but so is tabletop. And quite deliberately. “Target recognizes the popularity of summer entertaining products,” said Gina Sprenger, senior vp of merchandising, at the time of the launch. Whim includes coordinated tablecloths, cups, cutlery—all of which is potentially reusable but also expendable, depending on need and preference. The 500 Whim SKUs range in price from $1.99 for picnic plates to $19.99 for backyard games.

What Target is doing with Whim also has some strategic implications. Target historically has had a hard time making the connection between general merchandise and food. Seasonal presents an opportunity for that. With Whim, Target is providing sharp fashion, value and convenience. It’s also creating a situation where it will make sense for shoppers to pick up napkins, soft drinks, hamburger rolls and other items that they might ordinarily purchase elsewhere.

Of course, if Target can drive more consumables purchases, that will eventually drive home purchases. That’s important because, at this intermediary phase, margins are taking a hit. In the company’s first quarter conference call, Target president and ceo Gregg Steinhafel noted, “…our margin rate was adversely affected by mix, as sales of our lower-margin consumable and commodity categories outpaced sales in our higher-margin apparel and home categories.”

X
This ad will auto-close in 10 seconds