Target Corp. (NYSE: TGT) wants to up the game a bit in the second half of 2009 as it seeks to increase its marketing and hopefully prop up sales. One area of focus for its marketing efforts for the remainder of 2009 will be on Target's in-store pharmacies.Target will increase marketing as a percentage of sales for the last four months of 2009, sating that "For the year, our marketing plan is right on, but we've saved some money here in the front half for the express purpose of being able to invest it in the back half."
Target has been playing in the deep discount business of $4 prescriptions with fellow competitor Wal-Mart Stores, Inc. (NYSE: WMT) for some time now. Its increased focus will be on brand new television ads, as well as extensive online advertising with a Q&A format.
Focusing on pharmacy offerings is a gamble to try and increase overall bill-and-basket size from its customers, but Target's Kathryn Tesija indicated, "These efforts will help contribute to store wide sales growth as loyal pharmacy guests are some of our best guests in terms of frequency and basket size." But is that enough to take consumers away from Wal-Mart where they are already shopping with more of their dollars? Perhaps, but increased visits by pharmacy customers probably won't generate a retail surge for Target.
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