{"id":19544,"date":"2017-12-13T00:00:37","date_gmt":"2017-12-13T05:00:37","guid":{"rendered":"https:\/\/beyondphilosophy.com\/?p=19544"},"modified":"2021-09-10T19:27:23","modified_gmt":"2021-09-10T23:27:23","slug":"targets-revamped-store-customer-experience-experiments-culturally-target-off-target","status":"publish","type":"post","link":"https:\/\/beyondphilosophy.com\/targets-revamped-store-customer-experience-experiments-culturally-target-off-target\/","title":{"rendered":"Target\u2019s Revamped Store Customer Experience Experiments: Culturally, Are They On-Target or Off-Target?"},"content":{"rendered":"<p>Michael Lowenstein, Ph.D., CMC Thought Leadership Principal, Beyond Philosophy<\/p>\n<p style=\"text-align: justify;\">Target Corporation has had a number of challenges over the past few years, from abruptly closing all of their Canadian stores to a 2016 earnings shortfall, plummeting stock price, and a rather negative sales outlook for 2017 (first quarter EPS was 6% lower than first quarter 2016). The company is forecasting a single digit sales decline for the full year.<\/p>\n<p style=\"text-align: justify;\">So, how does Target intend to bring about a performance turnaround? The company is taking aim at a revised store experience for customers. Target has invested $220 million to remodel and renovate 28 stores in North Texas. According to Target spokespeople, the remodels will emphasize \u201cinspiration, discovery, style, and ease\u201d. Among the changes:<\/p>\n<p><!--more--><\/p>\n<p style=\"text-align: justify;\">\u2013 Top-to-bottom overhauls, with new design\/style elements and product presentations (based on what customers said they liked about Target\u2019s new stores)<\/p>\n<p style=\"text-align: justify;\">\u2013 Two entrances, one that promotes exclusive and seasonal items, the second for Online Order Pickup and quick purchases, such as for groceries (see below)<\/p>\n<p style=\"text-align: justify;\">\u2013 More attractive merchandise presentations, including \u201cupdated mannequins and fixtures in apparel, home and beauty\u201d.<\/p>\n<p style=\"text-align: justify;\">\u2013 Easier in-store shopping flow, with aisle modification designed to encourage customers to browse through apparel, accessories, and other products.<\/p>\n<p style=\"text-align: justify;\">\u2013 Updated, more engaging grocery department, with \u201cgrab-and-go food and beverage options\u201d, with fresher products, more choice, and greater convenience<\/p>\n<p style=\"text-align: justify;\">\u2013 Target\u2019s Online Order Pickup located at front of store, for faster, more efficient, check-out<\/p>\n<p style=\"text-align: justify;\">\u2013 Wine and beers shops inside the store<\/p>\n<p style=\"text-align: justify;\">In all, Target plans to fully redesign 110 (out of their 1,800) stores in 2017 and 500 in the next three years. This is a significant corporate initiative, with cash investment running into the billions of dollars.<\/p>\n<p style=\"text-align: justify;\">Apart from design, product, and other store elements, Target is also investing in technology which will enable store employees to more efficiently search inventory and also take payment from mobile point-of-sale devices.<\/p>\n<p style=\"text-align: justify;\">While all of this reads well, the planned modifications are the kind of inside-the-dots, rather conservative approaches most would expect from a mass discount retailer in search of <a href=\"https:\/\/beyondphilosophy.com\/customer-experience\/\">customer experience<\/a> enhancements. Here\u2019s my question, and my key issue. Beyond these \u201cinspiration, discovery, style and ease\u201d changes, how is Target, in parallel, evolving its store culture to generate more interaction with, and commitment by, employees?<\/p>\n<p style=\"text-align: justify;\">I\u2019m an active grocery and discount department store customer. Among stores I frequent are Target, Wegmans, Trader Joe\u2019s, and Costco. Where employees, and their commitment to customers, are concerned, the Target store experience will (likely) never equal Wegmans, Trader Joe\u2019s, or Costco, but, Target could certainly take some lessons from the store cultures of these successful retailers.<\/p>\n<p style=\"text-align: justify;\">Because Target will now be looking to place increased focus on groceries, I\u2019ll use Wegmans,Trader Joe\u2019s, and Costco as my reference points. Rochester, New York-based Wegmans, has succeeded in creating an almost cult-like bond with its customers. The company, which is well-known for its food selection and quality (you can even custom blend your own trail mix), and for its empowered, well-trained and proactive employees, has been named the best supermarket chain in America by Consumer Reports; and, yes, it certainly might be the best retailer on the planet.<\/p>\n<p style=\"text-align: justify;\">1. Wegmans. Wegmans has constructed and sustained a stakeholder-centric culture where the customer truly comes first, and customer experience is the barometer by which it measures success. For example, the retail grocery industry (and the discount department store industry) is normally associated with fairly passive and reactive customer service; but, like Whole Foods Market and Trader Joe\u2019s, Wegmans\u2019 employees readily make themselves available to help customers (who Wegmans refers to as \u201cguests\u201d) find what they want, and often make recommendations for what they think the customers would like. Do Target\u2019s store employees do anything like that? If so, I\u2019ve never heard of anyone experiencing it, nor have I.<\/p>\n<p style=\"text-align: justify;\">Speaking on a personal level, at Wegmans shopping is not a chore and is often pleasurable. Stores are attractively laid out, almost like an old-world open-air market. There are tea bars, multiple eat-in options, and chef-prepared breads and meals to take home. When shopping there, rather than rush through, the inviting atmosphere makes it enjoyable to take my time, relax and experience what the store has to offer. Better for me, and better for Wegmans. Will the reimagined Target store experience do that?<\/p>\n<p style=\"text-align: justify;\">Wegmans also does other things to set itself apart, and in positive ways. From a merchandising and reputation perspective, they are seen as active members of the communities in which they operate. They were one of the first chains to purchase from local vendors. Does Target do that? Don\u2019t think so.<\/p>\n<p style=\"text-align: justify;\">The chain supports local causes and events. Wegmans represents conscious capitalism, in the truest sense of the term, further building the bond between the enterprise and the customers, many of whom consider Wegmans \u2018their store\u2019<\/p>\n<p style=\"text-align: justify;\">They also offer new technologies, such as the interactive recipe and shopping list feature on their web site, and an iPhone app that helps shoppers organize their purchase list on an aisle-by-aisle basis in the store \u2013 all to enhance the shopping experience. Is Target including that in their technological upgrades? Don\u2019t think so.<\/p>\n<p style=\"text-align: justify;\">2. Trader Joe\u2019s. Shopping at Trader Joe\u2019s is truly a\u00a0<a href=\"https:\/\/beyondphilosophy.com\/delivering-unique-attractive-even-branded-customer-experience-lagniappe-company-can\/\">branded customer experience<\/a>. Each store has a light-hearted South Seas island theme throughout, including the Hawaiian shirt garb of store staff. Employees at their Monrovia, CA headquarters often served as a \u2018tasting panel\u2019, and they help determine which new products will be stocked in the stores; and, with tasting locations at each store, customers get to give the final stamp of approval, or rejection, by \u2018voting with their taste buds.\u2019 This is also a device for bonding with customers at the store level. Even though Trader Joe\u2019s stocks about 3,000 items, compared to the average supermarket\u2019s 30,000 items, sales per square foot are typically two to three times that of chain supermarkets.<\/p>\n<p style=\"text-align: justify;\">What has made Trader Joe\u2019s so successful \u2014 apart from wage and benefits packages, and opportunities for advancement, well above most companies in the supermarket industry \u2013 is the sense that employees are the brand, its communication style and fun, upbeat culture. Employees are selected and trained to multitask, and everyone seems to enjoy what they do. They deliver a great branded customer experience, and they stay (voluntary turnover is only 4 percent) because they enjoy working there and because the organization is thriving.<\/p>\n<p style=\"text-align: justify;\">3. Costco. Going to Costco is not an especially exotic experience, and yet shoppers often describe their visits as \u201cfun.\u201d Costco pays their employees a lot more on average than most retailers, enabling the company to keep turnover much lower than other retailers. Employee behavior, often identified as smiling, friendly and helpful, actively contributes to positive in-store customer experience; and this helps enable Costco to maintain focus on their original strategy \u2013 low margins, low overhead, big profits.<\/p>\n<p style=\"text-align: justify;\">So, in Target\u2019s revamped store customer experience experiment, which will soon be rolled out as a major test and downstream strategy,\u00a0<a href=\"https:\/\/beyondphilosophy.com\/webinars\/employee-ambassadorship-realizing-optimizing-stakeholder-value\/\">is the store culture, and linkage between customer experience and employee experience as Wegmans, Costco and Trader Joe\u2019s do so well, also being included?<\/a>\u00a0Is this strategy on-target or off-target?<\/p>\n<div class=\"ctx-module-container ctx_default_placement ctx-clearfix\">\n<div class=\"ctx-module ctx-nodefs ctx-content-text ctx-module-default\">\n<div class=\"ctx-sections-container ctx-clearfix\">\n<div class=\"ctx-section ctx-section-previous ctx-wide\">\n<div class=\"ctx-links-header\">\n<p class=\"ctx-nodefs\" style=\"text-align: justify;\">You Also Might Like&#8230;<\/p>\n<ul>\n<li><a href=\"http:\/\/customerthink.com\/its-really-not-about-foosball-and-free-lunch-digging-into-employee-engagement\/\" rel=\"nofollow noopener\" target=\"_blank\">It\u2019s Really Not About Foosball and Free Lunch: Digging Into Employee Engagement<\/a><\/li>\n<li><a href=\"http:\/\/customerthink.com\/recent-reports-confirm-the-uk-is-slipping-into-customer-experience-mediocrity\/\" rel=\"nofollow noopener\" target=\"_blank\">Recent reports confirm the UK is slipping into customer experience mediocrity<\/a><\/li>\n<li><a href=\"http:\/\/customerthink.com\/use-customer-value-to-fill-in-the-cracks-in-customer-experience\/\" rel=\"nofollow noopener\" target=\"_blank\">Use Customer Value to Fill In the Cracks in Customer Experience<\/a><\/li>\n<li><a href=\"http:\/\/customerthink.com\/customer-experience-strength-depends-on-being-customer-centered\/\" rel=\"nofollow noopener\" target=\"_blank\">Customer Experience Strength Depends on Being Customer-Centered<\/a><\/li>\n<li><a href=\"http:\/\/customerthink.com\/top-10-wow-customer-service-stories-from-2017\/\" rel=\"nofollow noopener\" target=\"_blank\">Top 10 WOW Customer Service Stories From 2017<\/a><\/li>\n<\/ul>\n<\/div>\n<div class=\"ctx-links-content\">\n<div class=\"ctx-link ctx-1\">\n<div class=\"ctx-link-title\"><\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<div class=\"ctx-module-container ctx_default_placement ctx-clearfix\">\n<div class=\"ctx-module ctx-nodefs ctx-content-text ctx-module-default\">\n<div class=\"ctx-sections-container ctx-clearfix\">\n<div class=\"ctx-section ctx-section-previous ctx-wide\">\n<div class=\"ctx-links-content\">\n<div class=\"ctx-link-title\">\n<p style=\"text-align: justify;\" align=\"justify\">Republished with permission from <a href=\"http:\/\/customerthink.com\/\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">CustomerThink.com<\/a><\/p>\n<table style=\"background-color: #dfdddd;\" border=\"0\" width=\"100%\" cellspacing=\"0\" cellpadding=\"0\">\n<tbody>\n<tr>\n<td style=\"text-align: justify;\">\n<div style=\"padding: 10px; float: left; padding-left: 20px;\">\n<p><a href=\"http:\/\/www.beyondphilosophy.com\/wp-content\/uploads\/2013\/08\/Michael-lovwenstein.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-5619 alignleft\" title=\"Michael Lowenstein - Beyond Philosophy\" src=\"http:\/\/www.beyondphilosophy.com\/wp-content\/uploads\/2013\/08\/Michael-lovwenstein.jpg\" alt=\"Michael Lowenstein, Target\u2019s Revamped Store Customer Experience Experiments: Culturally, Are They On-Target or Off-Target?\" width=\"27\" height=\"41\" \/><\/a><\/p>\n<\/div>\n<\/td>\n<td style=\"padding-right: 20px; text-align: justify;\"><a href=\"http:\/\/www.beyondphilosophy.com\/our-team\/michael-lowenstein\" target=\"_blank\" rel=\"noopener noreferrer\">Michael Lowenstein<\/a> provides strategic consulting, research design and in-depth, leading-edge analysis that helps clients deliver outstanding business results through deeper customer experience, communication, relationship, employee and brand equity insights. <a href=\"http:\/\/www.beyondphilosophy.com\/\" target=\"_blank\" rel=\"noopener noreferrer\">Beyond Philosophy<\/a> provide consulting, <span class=\"GINGER_SOFATWARE_correct\">specialised<\/span> research &amp; training from our Global Headquarters in Tampa, Florida, USA.<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Michael Lowenstein, Ph.D., CMC Thought Leadership Principal, Beyond Philosophy Target Corporation has had a number of challenges over the past few years, from abruptly closing all of their Canadian stores to a 2016 earnings shortfall, plummeting stock price, and a rather negative sales outlook for 2017 (first quarter EPS was 6% lower than first quarter [&hellip;]<\/p>\n","protected":false},"author":106,"featured_media":19545,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"","_et_pb_old_content":"","_et_gb_content_width":"","footnotes":""},"categories":[97,132],"tags":[],"class_list":["post-19544","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blogs","category-customer-satisfaction"],"_links":{"self":[{"href":"https:\/\/beyondphilosophy.com\/wp-json\/wp\/v2\/posts\/19544","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/beyondphilosophy.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/beyondphilosophy.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/beyondphilosophy.com\/wp-json\/wp\/v2\/users\/106"}],"replies":[{"embeddable":true,"href":"https:\/\/beyondphilosophy.com\/wp-json\/wp\/v2\/comments?post=19544"}],"version-history":[{"count":0,"href":"https:\/\/beyondphilosophy.com\/wp-json\/wp\/v2\/posts\/19544\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/beyondphilosophy.com\/wp-json\/wp\/v2\/media\/19545"}],"wp:attachment":[{"href":"https:\/\/beyondphilosophy.com\/wp-json\/wp\/v2\/media?parent=19544"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/beyondphilosophy.com\/wp-json\/wp\/v2\/categories?post=19544"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/beyondphilosophy.com\/wp-json\/wp\/v2\/tags?post=19544"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}