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8 tricks Target uses to get you to spend more money (TGT)

Target is known for its addictive shopping experience where customers come in for one item but leave having bought 100 more. But how does it convince you to spend so much money? We decided to find out.

  • Though it lags behind its competitors in terms of e-commerce, the 1,800 store chain has cracked the code on how to make its customers buy more once they're in stores.
  • Analysts say this is partly because of its in-store services and treasure hunt experience.

The age-old saying goes that if you walk into Target to buy one thing, you'll almost certainly leave with 100 more.

Because of this, the internet is awash with memes and tweets joking about how impossible it is to leave the store without a full basket.

But this doesn't happen by chance. Target has a cult following of fans, including Beyonce, that are lured into buying more than they plan to thanks to clever marketing, the positioning of products in the store, and the treasure hunt-like experience of shopping there.

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Despite this, the retailer continues to come under pressure as consumers shift to online – an area where it significantly lags behind its peers. Target's online store currently generates around $4 billion in sales annually versus $23-plus billion at Walmart and $60-plus billion for Amazon in North America, according to investment research firm Morningstar.

Target has had mixed results in the past two years – three-quarters of negative same-store sales in the fiscal year of 2016 were followed by three consecutive quarters of positive same-store sales growth in the fiscal year of 2017. It is now investing heavily in its e-commerce platform and focusing on rolling out smaller store locations in urban areas to reach a new customer base.

Find out how Target is enticing you to fill up your shopping carts below:

Store layout and services

Target wants to make it as easy as possible for its customers to find what they need and purchase products without worrying about how they will bring them home.

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The layout of stores is an important factor in this.

"There's great signage to guide you," Ioli Macridi, a nalyst at PlanetRetail RNG told Business Insider.

Once you find the section you're looking for, some will have an expert sales adviser on hand to give you guidance. About 330 of its stores offer a beauty concierge service, for example, where an adviser can give expert advice on skincare and beauty products. In other locations, there are baby registry advisers.

These in-store services are one of its biggest assets for conversion, Cowen analyst Oliver Chen wrote in a note to investors in March, adding that: "customized and thoughtful service is an important competitive advantage for Target versus Amazon."

Target is also increasingly focusing on creating ways to make it easier for shoppers to load up their carts without the fear of transporting these home. A new service, which is reserved to its urban locations, allows customers to have their purchases shipped home that day for a flat fee of $7 ($25 extra for larger furniture pieces).

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Seasonal offerings

In every store, including its smaller locations, Target devotes a section to season-specific items such as Halloween and Easter.

"Target is a seasonal leader," Macridi said, and some customers go to the store just to shop this selection.

To encourage them to browse for more, the seasonal section is typically located at the back of the store so customers need to walk the entire space to get there, she added.

Treasure hunt experience

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Target has channeled the TJ Maxx/Ross Stores style of treasure hunt shopping to win over consumers.

"Stock is rotated in and out,"

Private-label products

Target is known for its private label brands and has doubled down on this area of the business.

In 2017, it launched eight new brands including

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These products are a

rivate label now makes up around one-third of its total sales, according to Morningstar.

Partnerships and unique products

One of Target's biggest differentiators to other big-box stores is its partnerships and collaborations.

According to The Washington Post, Target has rolled out

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Social media

While Target lags behind its competitors on the Facebook fan front, it is far outpacing them on Instagram, an app which customers are increasingly using for shopping online and as a place to find inspiration before heading to stores.

Target has 2.3 million followers on Instagram, Amazon has 1.3 million, Walmart 1 million, and Kroger 52,000.

"They are very good on social media about promoting," Ioli Macridi, a nalyst at PlanetRetail RNG told Business Insider, and this helps drive traffic to stores.

Target frequently reposts photos uploaded by shoppers and bloggers using its products on Instagram to humanize its social media campaigns. And, makes it easy to shop for anything featured in these photos by linking the images on its feed to their corresponding web link.

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Social areas

Analyst David Gordon told Business Insider that retailers are increasingly devoting more space to areas where people can come in, have a coffee, and interact.

Target offers a Starbucks cafe in many locations, and in the past has also partnered up with other suppliers such as salad chain Freshii to offer fresh salads and wraps.

Most recently, it opened a Chobani cafe in its New York Tribeca store. As this is one of only three Chobani stores in existence, this is a tactical way to drive new customers to this location and encourage them to shop the store before or after they visit the cafe.

Bullseye Playground

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Target makes one final push at the cashier to make that final sale with its Bullseye Playground section.

Referred to by Target as: "

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