Retailers, consumers and prices
Target has become synonymous with its big red bulls-eye logo, but now the discounter wants customers to also gravitate toward a new symbol — an arrow.
In a bid to appeal to penny-pinching shoppers, Target is giving its namesake Target Brand, which includes staple items like tissues, diapers and sunscreen, a makeover. It is now showing up on Target’s shelves wrapped in new packaging marked with a big arrow and it has been given a new name — up & up. (Check out the new look, pictured to the left vs. the old look below)
Target, which reported a much better than expected quarterly profit on Wednesday, talked to Reuters ahead of the results about its goals for up & up — which is one of its biggest private brands.
“We believe that it will stand out on the shelf, and it is so distinctive that we’ll get new guests that will want to try it that maybe didn’t even notice the Target brand before,” Kathee Tesija, Target’s executive vice president of merchandising, told Reuters.
The maker of Progresso soups, Hamburger Helper and Green Giant frozen vegetables posted a disappointing profit for its fiscal third quarter. Even its slightly higher full-year outlook is below Wall Street’s expectations.
But here’s an interesting twist — the company saw strong sales of cereals, soups, frozen vegetables and refrigerated dough during the quarter, in a continuing trend whereby consumers are eating more meals at home to save some money in the recession. But while that helped sales in the U.S. retail segment, the bakery and food service segment languished, as consumer thrift led to fewer trips to restaurants and cafeterias.