While we are on the subject of retail appeal for Millennials, there is no question that Target is still number one with the right combination of low prices and style. Target has done a great job of staying in the zone of what Millennials value:
Social responsibility: Target donates millions of dollars each year to local schools. Target also sponsors learning opportunities and internships at unversities and colleges, including my marketing classes at University of Notre Dame.
Stylish advertising: Judy Hopelain, who blogs about retail at Retail Hits and Misses, tells me Target is a hit with her 17-year old daughter. They both enjoy this Target spot, running on the Olympics. "It’s got the multi-culti thing going for it, great music, no boring talking heads reading lame copy written by some old guy, and fun bedroom decor you can actually imagine these kids choosing for their rooms."
Sexy in-store experience: My 17-year daughter's disdain for Wal-Mart lighting, layout, and listless looking employees is apparent each time we shop there (which is too often for her. In contrast, she feels fine shopping at Target.
Super Deals: David Patrick, our fabulous client at Westlake Ace Hardware, reports "My 17 year old daughter is price conscious and takes pride in finding deals. Target is her favorite store"
Given those attributes, it doesn't matter that most Target merchandise can be found elsewhere -- like Wal-Mart -- and sometimes for less. Evidence? Target's sales grew 5.7 percent to $15 billion in 2Q, while sales declined at JC Penney, which like Target derives much of its revenue from clothing and home goods rather than groceries. Demographic profiles of Target shoppers show they skew younger and higher income. BIGresearch(8.19.08) shows Target and Macy's shoppers favor Obama, while Wal-mart and Kohl's shoppers skew toward McCain, a finding totally consistent with the demographic profile. This profile should serve Target well as Millennials graduate, start families, and furnish homes. Our bet is that they will keep Millennials' enthusiasm well beyond their 20's. Target is Pepsi to Wal-Mart's Coke -- The Choice of a New Generation.
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As George Bernard Shaw pointed out, "If you're not a liberal at 18, you don't have a heart. If you're still a liberal at 30, you don't have a head."
ReplyDeleteYounger TARGET shoppers will shift their political views in their coming years (although, perhaps not those from Minnesota), so continue to see them as a TARGET shopper -- they are smart -- but not as left as Notre Dame, and Mr. Obama