Target Carves Out Store Space For Apple Products -- 2nd Update
By Dave Sebastian
Target Corp. is creating enclaves for Apple Inc. products at its
retail stores that would double the space for the tech company's
products in certain Target locations.
The retailer on Thursday said the new option will be making a
debut online and roll out at Apple shopping locations in 17 stores
starting this month, with additional locations scheduled for the
fall. The partnership builds on a similar model Target has pursued
with Walt Disney Co., Ulta Beauty Inc. and Levi Strauss &
Apple's dedicated space will have new lighting fixtures and
displays for iPhone, iPad, Apple Watch, AirPods, HomePod, Apple TV
and other Apple accessories, Target said.
The retailer's website and shopping app will also have dedicated
Apple pages with a broader selection of accessories, the company
said. Target said its tech consultants will receive training from
Target already offers Apple products on its site and has
in-store displays for those items at certain stores. In recent
years, Target has invested heavily to expand its online business
largely by sourcing online orders from stores' shelves.
For Target, the partnership expands on its strategy to give
prominent placement to popular brands and products at its stores
and website to draw in shoppers. The dedicated space for Apple
products also builds up its specialty in electronic products. Other
retailers like Best Buy Co. have also created niches for tech
brands inside its stores.
Neil Saunders, managing director at the research firm GlobalData
PLC, said the addition of mini Apple shops inside some Target
stores is a smart move for the big-box retailer. Target has the
opportunity to generate higher sales through electronics such as
Apple devices, but those products can get lost in the sea of
gadgets Target sells.
"While current displays at Target are perfectly acceptable, they
lack the pizazz of Apple's own stores and even of the Apple
concepts at rivals like Best Buy," Mr. Saunders said.
Apple closed nearly all of its stores last year when the
pandemic struck and has had to intermittently close outlets in
certain states as virus counts rose. While its own retail stores
took a hit, Apple still posted its most profitable quarter ever in
January with $111.4 billion in sales. Driving that growth was an
uptick in higher-end iPhone sales and a pandemic-induced surge in
demand for its laptops and tablets.
(Dow Jones & Co., publisher of The Wall Street Journal, has
a commercial agreement to supply news through Apple services.)
Write to Dave Sebastian at email@example.com
(END) Dow Jones Newswires
February 25, 2021 10:33 ET (15:33 GMT)
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