Target (TGT, Financial), a discount retailer, is all set to sizzle in the coming winter with its new holiday collection in collaboration with Neiman Marcus Group, owner of a luxury department store chain. This company is one of those active retailers who keep formulating new strategies to deliver value to investors. It recently posted a great quarter and unveiled a number of plans to boost growth. Here is an amazing addition to the queue.
Great deal with greater benefits
This time, with the launch of the new collection, the retailer is targeting even higher as it brings to its portfolio a combination of 24 leading designers, Marc Jacobs and Tory Burch to name a few, to design 50 items which will be displayed in the stores of both players. It is not the first time that the discount retailer is enhancing its offering in collaboration with a high-end brand name. It had offered the Missoni collection a year ago, and it proved to be a blockbuster.
The holiday collection is scheduled to hit the market in December and will be priced between $7.99 and $499.99. In fact, this time Neiman Marcus is entering a new market by offering items which are priced lower compared to its normal rates for designer merchandise. This move was very much needed for both the players since the market is highly competitive and shoppers are cutting their expenses due to the uncertain macroeconomic climate.
Both the partners, Target and Neiman, cater to markets that are exactly opposite. Target caters to consumers who are price sensitive and Neiman, on the other hand, offers luxury products for affluent customers. What makes them similar is their emphasis on quality and great designs which will play a key role in the upcoming merchandise edition.
With the affordable versions of the top designers in place, Target is aiming to enhance its fashion image. Also, the new holiday collection, which offers a wide range of designer items for less than $100, is expected to be in great demand.
Conclusion
The discount retailer has been strategizing well to fight the slowdown in consumer spending by providing innovative offerings at a discount. It has also started taking care of its costs by making its store size smaller. Moreover, the company also has plans of geographical expansion in Canada, which is expected to drive revenue higher in months to come. With these good points already in place, the new partnership looks like the cherry on the cake. Investors should definitely keep a close eye on Target, especially considering it has already made investors richer this year.
