Lord and Taylor, Aldo, Pier 1, Sur La Table. Other retailers are going bankrupt, but this week Target’s stock price hit it’s highest level ever. It’s not just convenience. Here are five reasons why its parking lots are full:
1. Variety. The company is picking up sales from other stores that have closed, like Toys R Us.
2. Operating Systems. IT investments enable optimal inventory and curbside pickups.
3. Store decor. So definitely not Walmart!
4. Ubiquity. In 2000, Target set a goal of operating 2020 stores by 2020. They got 93% of that.
5. Cheap chic. The style is good enough, and the margins on private labels are great.
Target has increased the hourly wages of its workers by $2 per hour. This is one “anchor” that is going to survive.