With designers like Isaac Mizrahi, Target (NYSE: TGT) has done the unthinkable: establish itself as a big box discounter that's also a place you can shop for clothing without feeling ashamed. Now the company is taking it to the next level with plans to open four "Bullseye Bodega" stores in Manhattan on September 12th, timed to coincide with the end of fashion week.While a few boutique stores certainly won't add materially to the company's sales, that's not reall the point: for a cost that's tiny for a company of Target's size, the company is generating priceless publicity, and strengthening its brand as a leading clothier for the fasionable but budget-conscious. The fact that The New York Times did a story on the new stores speaks to the value of the plan.
Target's stock has taken a beating of late, as its increasingly upscale product mix hasn't fared as well in the current environment as Wal-Mart (NYSE: WMT). But when the economic tide turns -- as it always does -- Target should be well-poised to capitalize.
Super-investor William Ackman has a considerable paper-loss on his huge investment in Target, but he recently prepared funds to buy more. Investors may do quite well following him.











Reader Comments (Page 1 of 2)
9-02-2008 @ 6:22AM
Colin said...
Go Target... Its Your Birthday
9-03-2008 @ 8:44AM
Mike said...
It will be a welcome sight to see a Target fashion store. I think it will be good for business.
9-03-2008 @ 8:39AM
Maria said...
I love TARGET. Great for fashion and funky home stuff that looks like it cost a lot more, as well as staples.
I shop online to save money on
gas, use less gas and save money period. I shop at all my favorite
stores through an online website that gives me the unpublished codes
at about 300 stores (including Target, The Gap, Best Buy, Old Navy,
Drugstore.com, etc) as well as giving me between 5 and 50% back in
cash on my purchases. The site is http://www.fatcrumbs.com I am
being good to the environment and great to my wallet.
9-03-2008 @ 3:27PM
Patty said...
I would rather shop Target anyday than Wal Mart.
9-03-2008 @ 8:55AM
Trisha said...
Several years ago, Target revamped their stores and raised their prices. Since then, I've decided that it's not worth it, to shop there as often as I used to. The sales are seldom as good as the regular prices at Walmart. I think they "priced " themselves out of "Todays' Economy". We don't have the disposible money that we once had. Today, gas,food,and ever-increasing unemployment has put everyone on a budget. Those who still spend like they used to, will find find the wallet empty soon.
9-03-2008 @ 9:09AM
Target Lady said...
Target is my favorite store on the planet! You get incredible quality for a reasonable price. Almost everything in my home can be traced back to Target. I am not against Wal-Mart, but the quality of their home goods, and clothing pales in comaprison. Plus, I am a firm believer in the old saying,"You get what you pay for." Chances are if something is dirt cheap it will perform that way.
9-03-2008 @ 9:10AM
wolfy said...
As a long-time Wal-Mart and Target shopper, I'm hoping that the new revamping of the store with higher-end fashions, that, as the NY Times has stated, they will continue to keep their prices at the lower end (between $20-$50). At least those prices, when I can afford them, I can reach. It's those t-shirts for $250 at designer stores I just can't seem to wrap my head around...
9-03-2008 @ 10:23AM
me said...
i don't shop at walmart because stupid people work there and stupid people shop there. if anybody is from the northeast they know what i'm talking about.
9-03-2008 @ 10:46AM
sandy said...
please, please start carrying petite jeans for us short people
9-03-2008 @ 11:41AM
ellen sheehan said...
Iv'e shopped at both Target and Wal-Mart and i find Wal-mart's things to be much inferior to Targets. Targets stores are much cleaner and they are set up in a way that you can walk down the aisles. My favorite store has to be Kohs where they have a much more stylish sellection of things. It's true that they are pricier than the other two stores,but if you shop and do it carefully especially on the sales days you can do very well. That doesn't mean i don't shop at Target i do.
9-03-2008 @ 11:41AM
alex said...
i cannot imagine wearing the clothes and i use that term loosely..that they sell at target. garbage witha capital G...i go there for the candy selection and occasional beauty supplies. the cheap stores like them and walmart and kmart carry sizes made for the morbidly obese which i am not. i always wondered why saks has tiny sizes and these box stores could clothe an elephant
9-03-2008 @ 5:42PM
Ellen Cunningham said...
Bring this into Amarillo, Texas. We sure do need some ladies clothes stores for older women.
These stores we have mostly sell clothes for women that don't care what shows.
Thanks
Ellen
9-03-2008 @ 12:23PM
NICK said...
I SHOP TARGET FOR PAPER PRDUCTS, LAUNDRY DETR., TOOTHPASTE ETC. TARGET MAY HAVE DESIGNER CLOTHES FOR WOMEN, BUT NOT FOR MEN--WISH THEY DID.
9-03-2008 @ 12:35PM
Cheryl said...
Wow Alex, keep going to Target just for the candy, and you soon will be buying clothes for an elephant!
9-03-2008 @ 1:03PM
Juana said...
FORGET TARGET. I will never give them one more red cent. Here in Florida a policeman was shot in the face while attending to a domestic abuse call. When the Ft Myers people asked for stores to donate to his memorial fund for his two tiny toddlers TARGET REFUSED TO HELP. NADA>ZERO ZIP. The other stores- walmart, publix winn dixie all donated a thousand dollars each. No more salvation army donations at Christmas- NO FIREMAN BOOT DRIVES FOR MDA. Any publicly held business that refuses to give back to the comminity is not eligable for my hard earned money. I BOYCOTT TARGET FOR THESE VERY REASONS
9-03-2008 @ 1:44PM
ROB said...
I love Target because it is so nice and clean and the aisles are not junked up with crap. I feel like my life is in danger each time I walk through Walmart because you cannot see around the crap in the main aisle and people will not make their little goons mind and they run in the narrow aisles so I say shop Targe even though their prices are a tad bit higher. They have yet to sell their complete soul to the Chinese Devil.
9-03-2008 @ 1:17PM
msuicerfan said...
This is a reply to Alex:
"the cheap stores like them and walmart and kmart carry sizes made for the morbidly obese which i am not. i always wondered why saks has tiny sizes and these box stores could clothe an elephant"
When was the last time that you actually shopped in one of these stores??? All of the stored that you mentioned only have about 10-12 racks of plus-sized clothes, most of them look like tablecloths or curtains, but have 25-30 racks of clothes devoted to skinny-toothpick women. Maybe you should get your vision checked
9-03-2008 @ 1:24PM
Janice said...
Thr fashions by Issac are dull in style and colors. The line is for the young, no real fashion for middle age and older women.
I shop for other things at Target but not
clothes or shoes--to ugly.
9-03-2008 @ 2:05PM
YARB said...
Target is owned by the French. The French does not support American military. I won't be patronizing them any time soon.
9-03-2008 @ 2:06PM
chris said...
Target is opening up here in Alaska soon and I think it is a mistake on their part. Prices are to high to begin with and dont offer a big selection in any department anyway. I dont see them staying here long. we moved here from Texas and never really liked their store merchandise there,would only go in about once a month to see if they had anything different and never saw any change. they do not have hunting or fishing equiptment which will be their big downfall up here. everything they have you can get at walmart cheaper and that is a big thing in Alaska since everything is higher than the lower 48 anyway.