Target is opening 17 mini Apple stores in its stores this month, with plans to expand them to other locations.
Target
Target wants to give buyers one more reason to skip trips to the mall: It’s adding mini Apple stores to some locations, with more room for iPhones and other popular gadgets.
The retailer said on Thursday that the stores will open in 17 Target stores this month and plans to expand to more locations in the fall. Target already sells Apple merchandise, but the stores will double the tech company’s footprint in each store, add more accessories, and have staff with specialist training from Apple. The brand’s products also have a new look on Target’s website.
Target Chief Growth Officer Christina Hennington said the dedicated area will grab customers’ attention and make the sales floor more experiential. It will also feature videos and displays that are more engaging, she said.
“When we have something that is uniquely engaging and different, be it in the range, how the experience is brought together or service – which is a big part of what we’re talking about with the Apple experience – then it draws our guests to, which then drives them more traffic, and of course, sales over time, ”she said.
In a statement, Apple said it looks forward to “continuing to work with Target on exciting new ways to serve customers in-store and online.”
For some consumers, a stop at Target’s stores has replaced hours of shopping trips to multiple retailers during the pandemic. The big box retailer has seen significant sales growth as it remained open as an essential retailer early in the global health crisis and then benefited from convenience with its wide range of goods, sidewalk pick-up and third-party delivery service.
That translated to $ 6 billion in market share gains as of the end of the third quarter, the company said, citing external and internal research. The stock price has also skyrocketed. As of Wednesday’s close, Target shares are up about 64% over the past year. Its market value is $ 93.68 billion.
After its massive quarterly gains, the discounter will face challenging comparisons. Consumers could return to their old habits as the pandemic abates, such as returning to multiple stores instead of consolidating travel at Target. Some investors have already become skeptical of stocks benefiting from stay-at-home trends. The company plans to report fourth-quarter earnings and host a virtual investor day on Tuesday.
Target’s leaders have said they can continue the upward trajectory by taking sales from struggling retailers and offering unique merchandise that captures customers’ attention and more of their budget. It has launched private labels such as athleisure line All in Motion and limited-time collections with beloved brands such as Lilly Pulitzer and Hunter.
It has also tried Disney stores in some stores and showcased Levi’s jeans and clothing in a dedicated area. It will open hundreds of scaled-down Ulta Beauty stores later this year with curated products and trained makeup and skin care professionals.
With its latest ‘shop in shop’, Target will showcase Apple – a brand appealing to shoppers and a common meeting place in shopping malls. It will resemble the tech company’s stores with new lighting and lowered tables where customers can try out Apple products.
It won’t have an Apple trademark – the “Genius Bar” – where customers can get technical support from a concierge. Hennington said Target has not ruled out adding that in the future.
Hennington declined to share the financial terms of the deal. She said it had been talking to Apple about the idea for months and working with the tech company to choose the locations for the stores.
She said technology played a central role this year in protecting and entertaining people. She said the retailer sees it as a growth category, mainly because of Apple’s customer following.
Sales in Target’s electronics category grew 50% in the third quarter and more than 20% during the holiday season compared to the same period a year earlier.
Nearly a decade ago, the retailer tested a concept to showcase Apple in some stores with more prominent displays, but the company said this new effort is a separate strategy and goes well beyond signage swapping out.
Here’s a list of the first 17 target locations the Apple stores will have:
- Monticello, Minn.
- San Jose, California.
- Oklahoma city
- Allen, Texas
- Hurst, Texas
- Austin, Texas
- Irving, Texas
- San Antonio
- Gainesville, Fla.
- Orlando, Florida.
- Clearwater, Fla.
- Miami
- North Wales, Pa.
- Newark, Del.
- Woburn, Mass.
- Nashua, NH
- Latham, NY