A child holds a Walt Disney Co. Pixar Cars toy in a Target Corp. store. in Chicago.
Daniel Acker | Bloomberg | Getty Images
The national retailer with around 1,900 stores in the USA began 2019 with the opening of Disney stores in select locations. With the expansion, more than 160 Target stores will sell Disney merchandise, from toys to costumes, by the end of the year.
In a sense, Target’s partnerships transform its stores into mini-malls where shoppers can conveniently browse a variety of products under one roof. Buyers can get a vaccine or fill out a prescription in a reduced form CVS health. You can have a frappuccino at a. order Starbucks Coffee shop. You can find dedicated displays from Apple Gadgets and Levi Strauss Denim. And with mini. try a lipstick sample or get beauty tips Ulta beauty Shops that started opening in select stores earlier this month.
The retailer’s expansion of Disney stores comes before Christmas time – an important time for toy sales. Macys recently announced that it will also expand its toy range. It Made a deal with Toys R Us To open shops in more than 400 branches of the department store chain and online. A larger selection of Toys R Us merchandise is now available on Macy’s website.
Steve Dennis, a retail strategy analyst, said the Toys R Us shutdown “had market share and many retailers wanted to recapture it.” That has led to increased competition between retailers like Walmart, Amazon and Target – and made toys an appealing product category for Macy’s.
He said the Disney stores could help Target stand out and raise the price of its toy department.
“One of the trends I think you are leaning on is ‘how do you create more uniqueness and differentiation for your brand’ and somehow differentiate it from the typical type of merchandising?” he said. “What is that additional reason to go to the store, or website, or maybe buy something else on your trip?”
Toys were a growth category for Target and continued to show momentum in the second quarter that ended July 31, according to Christina Hennington, chief growth officer. She said on the company’s conference call that toy sales were up the low 20% year-over-year over the three-month period.
Target’s mini Disney stores and website can be used by shoppers to find items from popular Disney items, including Star Wars and Raya and the Last Dragon.
Together with Disney, Target announced that it would be working with the well-known toy retailer FAO Schwarz for the second year in a row. There will be an exclusive 70-piece toy collection with FAO Schwarz, including items from Barbie and Paw Patrol. It will also have a pop-up shop inside The FAO Schwarz flagship store in New York City.
Target’s shares are up around 43% this year. The enterprise Last week’s earnings expectations exceededas it saw a strong start to the back-to-school season.