On Monday I did a FaceTime video at a brand new, days-old Target store in Norwalk, Connecticut, that I described as a dismal and depressing shopping experience – low energy, riddled with out of stocks, and reflective of “retail yesterday,” not “retail tomorrow.”
Got lots of email in response.
MNB reader Bob Miller wrote:
Retired Albertsons guy here. I enjoyed your candid view of the new Target store. Agree with your comments.
And from MNB reader Joe Colalillo:
Hope all is well. A brand new 75,000 sq ft Target store opened in Flemington NJ last week with the identical conditions including no RX without any signage to explain why it wasn’t open. Your comments are spot on. Be well.
One quick note here: When I get notes from people like Bob Miller and Joe Colalillo telling me I got something right, it makes my day and convinces me that someday I may actually be good at this job.
MNB reader Monte Stowell wrote:
I don’t care what Target you go into in any market, they all look the same as the new Target in your todays missive. Missing full shelves, lack of signage that shows a good price that shows why the consumer should buy that item The end aisle displays do not create excitement for the customer. When you open a new store you have to have displays with brands and pricing that “Wows the consumer.”
Target is a very mediocre retailer who has people in high places that do not know how to relay expectations and hold people accountable. Plain and simple, they do not do the basics very well. I cannot understand why the top executive management cannot see what you and I see. Target misses the target on being a great retailer that they once were.
MNB reader Mark Heckman wrote:
Following your commentary and your video visit was reminiscent of my days as a store manager walking the store with my supervisor, on a Monday morning….hoping that they were in a charitable mood if on that day my store was not standing tall.
Even in some of their best stores, Target’s lack of attention to detail and basic merchandising practices is missing with the exception of just a few department store categories that Target has been successfully touting for decades.
This Connecticut store looked as if they had merchandise and offerings for a 80,000 square foot store, but needed to spread it over a 117K footprint. If first impressions are truly lasting, this store is already in trouble.
From another MNB reader:
Brian Cornell announcing his departure as Target CEO less than 48 hours after your FaceTime with the Content Guy: A Target Badly Missed. Coincidence? Maybe your FaceTime segment opened a few eyes at 1000 Nicollet Mall, Minneapolis, MN and with the Target board of directors.
Regarding Michael Fiddelke, with the exception of Brian Cornell, Target has had a long history of promoting CEOs from within. While that lessens corporate culture clashes it doesn’t always bring fresh thinking. That may partially explain why Target is stuck in “retail yesterday”.
You mentioned in your FaceTime segment on Monday Target needs a merchant. I certainly agree with that. As you point out, there were way too many out of stocks and little excitement in the Norwalk store. Employees seem to be just going through the motions. Unfortunately, store conditions and shopping experience are less than optimal in other locations and it doesn’t seem to matter if the store is 1000 miles away from headquarters or in the Twin Cities. This has resulted in revenue has been essentially flat since 2021. If one considers inflation, this is a decline. Maybe the executives need to see the stores as customers see them and not on announced visits.
As for the Norwalk location, the only indication I saw in your video that the store was brand new were some balloons just inside the entrance. The store didn’t look ready to open. Entire sections, like the Apple accessories, had no stock. Others, such the Halloween candy, were only partially stocked. Since you shot the video in mid-August, I doubt that there had been a big run. It didn’t surprise me that the CVS pharmacy was closed on the weekend, which are slow prescription days, but hours need to the prominently displayed. There appears to be a sign with “Pharmacy Hours” over your left shoulder, but was that the only one and was it large enough to be noticeable?
Turntables not displayed anywhere near the albums? I suspect that is due to the products being is separate departments, albums in the entertainment department and turntables part of what looked like home furnishings. So, the non-merchant doesn’t even think of cross-merchandising and/or the culture may be “We historically don’t do it that way” or “We tried that once, it didn’t work”.
The grocery departments in Target stores are mediocre, at best. However, I believe Target uses the grocery in non-Super Target locations to draw customers through the store. As a result, their placement is far from the single entrance/exit. On the other hand, Super Target locations, as well as Walmart Supercenters and Meijer, have dual entrances and the supermarket helps attract customers to the store.
There always can be excuses for a crappy retail experience. But you only get one opportunity to make a first impression, and Target is blowing it.
And from another:
Your FaceTime couldn’t have been more timely. I’m not sure a COO moving to CEO is what you had in mind. The announcement came with the customary buzz words and platitudes and without much substance. Likely more of the same, but hey maybe he’s a reader of this blog.
To be fair, MNB reader Rich Heiland – a retired journalist and a winner of the Pulitzer Prize – went to a new Target opening in West Chester, Pennsylvania, and on his blog gave it a solid “B.” Not sure if I am just a tougher grader than he is, but here is an excerpt from his assessment:
I have to say, I was pleasantly surprised. But not put in awe, not wowed – more on that later.
The parking lot (shared with a Planet Fitness) was packed but inside, with wide aisles, the store did not seem crowded. I went straight to the CVS pharmacy. Kevin found his CVS in Target closed, with nary a sign or clue about when it might open. Mine was open, though obviously not fully stocked in terms of Rx medications. But, the pharmacist was there.
I had a Rite-Aid a one block walk from my apartment but lost it to the firm’s collapse. Rite-Aid’s records were bought by CVS and that chain gave me a “home” store that was further away than I wanted, so I was pleased with the Target location. The pharmacist looked up all my records, made some updates, gave me her card and told me to give her information to all my doctors. I was impressed, and told her so.
Then I wandered. Like Kevin, I found some empty shelves but not many. One set featured items for sale so I figured may they had sold out during the soft opening. Kevin was pleased to find his CT Target was selling LPs. We aging hipsters in particular do like our vinyl. But, Kevin also noticed there were no record players for sale in that section, a brain-dead sales omission. Nor, did he find any in electronics. He finally found a couple in home goods. I never did find them in my store. Kevin is a few years younger than I so obviously has a sharper eye.
I decided to give the grocery a test and my short verdict was: I won’t be using it. Compared to the Acme at the other end of the shopping center and an Aldi two blocks or so away, the selection was slim. I later stopped at Aldi’s to do some price checking and overall, Aldi’s won. Target’s “target” grocery audience seems to me to be people who don’t dine with a lot of variety so are fine with picking stuff up while they are on an errand to other parts of the store. I will note that our Target has a drive-up area for groceries.
Several check-out lanes were open and there was a self-checkout option. When a Target opened in my former town of Huntsville, TX it had plenty of open checkout lanes but a couple of months after the grand opening, it was down to a couple, so the jury is out.
So, end of trip impressions? Really liked the pharmacist. Beyond that? Well, it was a big box. And I guess that brings me to my central observation.
When was the last time you were wowed by any big box? I can’t remember. I will go to Target because other options are a good drive away. It probably will pull me off Amazon for some items. But in terms of anything like brand loyalty or excitement, nah.
As for groceries, I don’t expect much anymore. I go to Acme and Aldi and get what I need without any level of anticipation or excitement. There is a Wegman’s a bit of a drive away that is fun, but it’s far enough I don’t often go. Last time I got excited about a grocery store? A few years ago in New Bern, NC on a visit to our daughter’s in-laws. Harris Teeter opened its only mega-store. I can say it did “wow” me and if I lived in New Bern, I’d go there and to a degree, price really wouldn’t matter.
Thanks, Rich, for offering a different view of a different market.
On another subject, from MNB reader Nathan Tully:
I was happy to see your article on the NY mayor’s veto on the minimum wage hike for grocery delivery workers as it touches on a HUGE driver of inflation and one of two points that is seldom mentioned concerning rising retail costs- labor costs and theft.
In today’s highly politicized world everything is a talking point as long as it supports the POV you are standing for. Pre COVID there was a huge push for minimum wage increases that often would double what the minimum wage was. During COVID we all saw what happened with the rampant looting, the outright daytime theft due to no criminal penalties, and states pushing for “living wages”. Ton to unpack with all the reasons the above transpired but I’ll stick to the basic tenants of labor and shrink as drivers to cost to serve.
We in the industry (and those who make the businesses run) know that for businesses, labor has been and will continue to be (until AI takes over) the number one expense line on any P+L. To make the P+L work, as labor cost increase obviously gross revenue needs to increase through raising retail prices. The same process must occur with loss due to theft spiking through the roof and is no longer punished (so therefore encouraged). We know all of this but the average Joe on the street never considers these points when politicians are angling for a larger voter block and champion ideas of “living wage” versus minimum wage and soft on crime positions.
The idea of minimum wage being an entry to the labor force and an opportunity for young workers to cut their teeth on a low skill job has been hijacked and we have middle aged people working in a fast-food establishment demanding $50 an hour to sell donuts.
The disconnect occurs because economics 101 has been removed from the mandatory education requirements and a vast majority of people simply do not understand how businesses operate or how costs are incurred along each step of the supply chain. There is an energy and labor cost along each step and if the labor has doubled, the retail price must follow. Minimum wage positions (the true federal rate of $7.25) are probably less than 5% of all jobs. “Living wages” vary by region and are market driven by supply and demand. We all can vote with our feet. If the area is too high to live in, then move (this is happening).
Costs are truly out of control for everything and those who make less certainly feel it more. We need Stew Leonard to write a letter to the country explain how costing works since he does such a fine job with his customers. With his gentle way maybe, he can help open people’s eyes to the connection between demanding $20+ minimum wage and being soft on crime spikes the cost of a loaf of bread. Someone on the mayor’s staff understands Econ 101 and good for them for understanding the numbers because they never lie. Higher minimum wages sound good on paper but do the math and the end impact usually has very little net result for the end user as they now struggle to pay even more for everything around them.
Finally, reacting to last week’s piece about attending a Coral Reefer Band concert, my first since the passing of Jimmy Buffett, which taught a lesson about value propositions and core values, MNB reader Todd Ruberg wrote:
Kev—love your take on the Coral Reefer Band show. I was a big Buffet fan, my first show was in 1976 at the Santa Barbara County Bowl and was hooked ever since on the live shows.
An interesting corollary: Dead and Company. I’m a Dead Head with dozens of shows of the original band and all the subsequent iterations under my belt including Dead & Company. But, I’ve essentially boycotted the recent shows at the Sphere and Golden Gate park. Ticket prices of $300—$400 just offended me. The Original GD shows were never more than $40 and you could tape the shows for free. This “reinvention” just strikes me as milking the brand for profit vs. serving the fan base.
From another MNB reader
I enjoyed reading your perspective on the Coral Reefers. Jimmy’s passing was tragic for all of us parrot heads and I admire the “keep the party going” movement. I can’t argue that my parrot head club is primarily AARP eligible, but the music is timeless and the enthusiasm for the lifestyle is contagious. The international oversight of clubs (Parrot Heads in Paradise) is actively working on attracting younger cohorts and I hope to see that come to fruition. I do like to remind people that everyone under the age of 48 was not alive when Elvis Presley died yet he is still relevant. So let’s toast Jimmy and keep the party going!
I hope it works. But I’m skeptical that anything other than the music will survive long-term. (Thought the music, to be clear, is enough.)
From another reader:
There is a Margarita Restaurant in the Cancun Airport that may live on forever!
Okay, but it is Cancun. The question is, if they took “Margaritaville” off the sign, would it do less business?
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