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How Target Is Challenging Amazon

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As it redesigns its stores, Target is getting back to offering fashion-forward merchandise at decent prices. If it can keep that momentum going, it will help set the company apart from its peers including Walmart, Amazon and Kroger. Nestled inside Target's Minneapolis headquarters, racks of unfinished clothes line the walls. In another area, sketches and splotches of color are hung up for inspiration. Walk down the hallway, and it looks like you've arrived at an HGTV set with bedrooms, living rooms and kitchens on display. This is the creative hub of Target's in-house brands — a key part of the retailer's turnaround. Scattered throughout, there are chemical mixing labs and an alcove with a handful of 3-D printers. About 550 employees work together to bring roughly 40 private labels, such as Goodfellow & Co. for men's clothing and Up & Up for cleaning supplies, to life. Meetings take place around a dining table in Target's Made By Design room, which is decked out with kitchen appliances and other utensils from that label. And "Targeters," as they're sometimes referred to, arrive back from fashion shows or visits to overseas shops, toting items they've collected on their journeys. Each week, so-called kid influencers are ushered in and out of the Cat & Jack room to offer feedback on clothing styles being developed for the coming year. » Subscribe to CNBC: http://cnb.cx/SubscribeCNBC About CNBC: From 'Wall Street' to 'Main Street' to award winning original documentaries and Reality TV series, CNBC has you covered. Experience special sneak peeks of your favorite shows, exclusive video and more. Connect with CNBC News Online Get the latest news: http://www.cnbc.com/ Follow CNBC on LinkedIn: https://cnb.cx/LinkedInCNBC Follow CNBC News on Facebook: http://cnb.cx/LikeCNBC Follow CNBC News on Twitter: http://cnb.cx/FollowCNBC Follow CNBC News on Google+: http://cnb.cx/PlusCNBC Follow CNBC News on Instagram: http://cnb.cx/InstagramCNBC #CNBC #Target #Amazon How Target Is Challenging Amazon And Walmart | CNBC
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Text Comments (3094)
Romain Sandt (6 hours ago)
interesting how the CEO said "guest" and not clients or customer. A single word that resumes a global strategy in shops. Only shopping is taking the market of good deals. So traditionnal shops have to focus on the experience.
Michelle Rodriguez (1 day ago)
Portland TX-needs a TARGET----K-mart just closed & a big store now is empty
Brian Heinis (1 day ago)
Deplorable people shop and work at Target
Coin Stacks (1 day ago)
Target is a rip off.
Not_PopSK Gaming (1 day ago)
I love target it makes you feel good. Big isles clean. Very organized. Good items. Pretty quiet . I like their bigger stores with beauty toys food and furniture .
Scottius Nevious (1 day ago)
Target doesn’t compare to amazon. They have been investing in themselves for years, target is doing nothing special, in fact they are decades late. The best marketing strategy is making a YouTube channel.
Greville Prince (1 day ago)
target stores keep the store open custermer friendly affordable pricing too
Iveta Welborn (2 days ago)
When it comes to decor, clothes, and home goods, I like target. But when it comes to food and cleaning supplies, I’ll stick with Walmart. Except for fruits and veggies- I’ll get those at Harmon’s or a local farmers’ market.
M Y (2 days ago)
I honestly go to target when I'm bored n after 3 Hours i get out with a bag of Chips and a Can of Soda 👽
Harry Roger (2 days ago)
Lol. Amazon >>>>> Target.
Claire P (3 days ago)
Honestly I *will* go in public with a retail store clothes such as target, gladly. But Walmart is a different story...
RemnantSeapunk (3 days ago)
One of the only ways that a department store can last that isn't Walmart is to offer a unique shopping experience that is fun and creative and makes you want to splurge. That is the advantage that retail shopping has over online shopping. It's how you can make a fun afternoon out of shopping and looking at stuff. Target does a decent job at it though I do think the prices are not very favorable but I call that the "we're not Walmart" tax.
TTV_Pammy (4 days ago)
No
Detriotman (5 days ago)
I like Wal Mart and Tarjay Tarjay has better household items bout are great with grocery.
Alicia Neal (6 days ago)
Don't worry Target, you'll always have my dollar
Second Take (9 days ago)
Target is closing stores in Black neighborhoods in the US. They are excluding many consumers.
Jordan Casey (9 days ago)
3:53 pretty sure that guy only blinked twice and he had to actively remind himself to do it both times.
MrMister1227 (10 days ago)
I started going to target after i noticed how many setion 8 people shop at wallmart
Faith (10 days ago)
*video sponsored by target
Eleanor Harnage (10 days ago)
His eyes don't move and he only blinked like four times....Can't tell if that Target CEO is reading off of a teleprompter or is actually a robot.
Shrutik Gaoture (11 days ago)
Ladies and gentlemen, welcome to t-t-t-t-t-target~~~
Sally Shoaf (12 days ago)
I like target because whenever I go in there (especially to the home goods section) I feel excited for my future, which isn't something that I feel very often.
basejump (12 days ago)
STOP licking your lips and blink your eyes once in a while, Mr Cornell...you're creeping us out!
Mckenzie Mahal (12 days ago)
I legitimately love Target.
John Quiroz (14 days ago)
Is this just a commercial?
Chuck's poke (14 days ago)
I live in San Francisco and I went into Target to purchase a computer. I found out that Target does sell computers. I was so shocked a left have only went back to pick up item purchased on line I know that there is probably low profit margins on electronics but those buyers of electronics will also purchase other items then or maybe in future. It was just shocking that major retailer would not sell an item found in just about every home in America moreover San Francisco.
Jeremy Davis (16 days ago)
Really dont want to pay 5 times the price for shampoo than walmart just so I dont have to deal with idiots.
SuntzuMocro (16 days ago)
The red capital E is just too agrEssive.
Ben Solo (17 days ago)
I go to Target every Saturday and always buy something Star Wars related :P I love Star Wars
Agent_Venom009 (17 days ago)
The Big Red has a much nicer atmosphere than the Big Blue for some reason. The Red colors are very interesting and yet comforting.
TreeMobile. (18 days ago)
I like physical stores than online stores since you can see the real dimensions of the item you're buying. Hope Target will win its future endeavors on both physical and online retail.
Genesis Couture (18 days ago)
I travel all around the states and always stop at target for essentials. It’s quiet there isn’t a lot of people so it’s not crowded and their undergarments for females are simply amazing.
SlightlyRandom (18 days ago)
I like it, the target by my house got nice upgrades so I’m glad they took the risk.
7saany (19 days ago)
Target is amazing, Ive always loved it. the quality of their products for the prices is incredible and they have just about anything! There is also something therapeutic about walking the isles of Target, my experience at any of their locations has always been amazing! Unlike online shopping where you never know what youre gonna get
Rene Michel (23 days ago)
Target is more expensive than Walmart
Aaron White (25 days ago)
So the stock price is up. Up from where? The one day decline back in 2/2017 or beginning of 2018. Investors are stupid, if they sell out so easily when executives make strategic decisions, who says they're vested in the long term health of the company. Everyone simply thinks Amazon will eat everyone elses lunch. That's the tenor of these montages and its just b×!!$#!$.
Daniel (25 days ago)
Yeah, time to defeat Amazon (I worked at amazon for a year and then walked out and it was the most degrading, disgusting and wasteful place I’ve ever worked, Amazon is horrible for the American economy and should be banned.) it’s time to bring back the shopping malls. This online shopping has gotten out of hand. I feel the same way about eBay. I thought working for these online shopping companies would be the key to the future of retail but instead found that it’s just a burden and the feeling of walking into an actual store felt more correct. I hope that you go to your local retailer (chains included) in the future instead of this online shopping scam. These online retailers treat their employees like slaves, that’s basically what amazon taught me.
fr33bird7891 (26 days ago)
What is with all of the Wal-Mart comments? This is Target vs Amazon not Target vs Wal-Mart.
Laurie Swanson (27 days ago)
Where’s the music like others stores had miss that
Andrea loscana (27 days ago)
Too Expensive. !!!!!!!
Kayle Hot (30 days ago)
I like target better than Walmart cause it just overall feels more clean and high class even tho it is more expensive I feel more safe!
Steve Siverling (30 days ago)
My dad says he thinks online sales are temporarily.  I am not sure about if people will get the wrong item.  Or it may not get to them.
Kitt F (30 days ago)
Target is a little pricier. But they have good deals and coupons that made it affordable. I never knew that till recently
John Miller (30 days ago)
I think calling Taget, "Tar-jay" sounds incredibly tacky. It reminds me of someone who is attempting to sound original or hip.
Aaron Decker (1 month ago)
Fake News.
ale (1 month ago)
Wild Fable is so great
maadcitylili (1 month ago)
this is what kmart needs :/ imma miss kmart and all its sweet prices
Tee Dee (1 month ago)
Having had a daughter that worked at a Target here in Canada (after school & on weekends) I would be more than comfortable & or confident in betting my life that the wages & moral of their workforce still sucks. And because that is the engine & heart of any successful businesses, here is betting that it is only a matter of time before they go belly up again.
Darrell Borland (1 month ago)
i will not shop Target.....i am against their 'gender neutral' policy. thanks
John Becker (1 month ago)
If Target wants to win me back as a customer, they need to fire their CEO who made horrible decisions
Henry Lawrence (1 month ago)
Target ain't cheap. That's a myth.
SuperZX (1 month ago)
Nothing good about Target. Working there is suicidal plus Their clothing offerings now sucks.
Sean Sundae (1 month ago)
Bad customer service and to many old merchandise.
Sulfen (1 month ago)
Target is a lot better than Walmart. At Walmart the employees always look miserable and I always have issues with them. And at target it’s usually more relaxed and friendly.
A _ Cash (1 month ago)
Can they open in canada again i miss target 😢
Doug Johnson (1 month ago)
Lol, no mention of Target's failed experiment of letting grown men follow your teenage daughter into their bathrooms if they just "identify" as a woman. Your daughter's safety being just a small price to pay for being "woke".
Claire Conover (1 month ago)
I would not have guessed a bulk retail & soda ceo would actually be savvy enough to completely change course and invest in becoming ‘fashionable’... as opposed to cutting corners like sears did.
640 (1 month ago)
Beauty and Symmetry matters, make beautiful things and present them in a beautiful place and people will come & buy them! Hence why Apple Stores have been so incredibly successful!
Michael Aaron (1 month ago)
I've been working for Target for 9 months and it was a big mistake. They treat their employees like s***. I can't even get 12 hours a week. They f***** us all over but gave big bonuses to their executives. the Target in Waterbury Connecticut sucks
SPIRIT KAT (1 month ago)
target a rip put big red sale price then when pay its more expensive
Steel (1 month ago)
This video was the first time I have ever heard anyone call 2008 "The Great Recession". It was a lot more like a pot hole to anyone not in the housing/construction buisness
Ima Chubby Hamster (1 month ago)
My local target got remodeled about 3 months ago, and I really like the new look. The beauty isle is now more open concept, and looks more modern. The whole store just feels more bright, and the thing that you can buy from their own brands are really awesome. I like the way that targets going 😊
Gary Widom (1 month ago)
Oh geez whomever gave the Target CEO his media training needs to be fired. He has these robotic, forced hand gestures. Totally distracting, taking away from his message. Just act and speak like a normal human. It’s not difficult.
Modern Modern (1 month ago)
At 2:30 that Music is extremely annoying! I will stop watching!
BlownMacTruck (1 month ago)
Target has definitely pulled me away from Amazon for a lot of things. It's got the same prices for the stuff I buy on Amazon (if not cheaper), and I can just pick the stuff up from the pickup counter while I'm running around doing other errands around the city. They have amazing customer service, and they get the stuff to the pickup counter within an hour after ordering online. I don't need to spend any time in the store, but it's easy to if I end up remembering things to pick up that I didn't order online to grab at the pickup counter. Oh and it's SUPER simple to search inventory for various Target stores to see if certain places have the things I want.
Diamonds and Fuzzy slippers (1 month ago)
I love Target
David Duarte (1 month ago)
The 'Great Recession' was late 2000s not early.
David Duarte (1 month ago)
You ever notice that u never see 35 or older male workers at Target??
Kevin is Nice (1 month ago)
making stores in Canada was stupid.
M C (1 month ago)
Meh.
f z (1 month ago)
All I want is Walmart to go under for good. That company is rotten in so many different ways... And I work for them! (Which I regret)
chechnya (1 month ago)
Funny to see everyone hating on Walmart. Target sells the same junk but at a higher cost.
Angel Hernandez (1 month ago)
Target should just get a target van and personally deliver packages to customers. This will reduce cost for shipping. And if it’s something not in store of course they can just use ups and such.
Jose Alvarez (1 month ago)
Ceo loves his hands
macsnafu (1 month ago)
Businesses at the mercy of consumers? So many anti-capitalists keep telling us that businesses have great power and control the rest of us. This video and others like it tell a different story. As for Target, I'd be happier if they would stop copying Wal-Mart (as in their redesigned floor plan, for example) and would do more to make their stores more distinctively "Target" stores. If this video is any indication, they may be doing just that. Good for them!
Becki Draven (1 month ago)
I love going to Target when I go on holiday to the US :)
Frost (1 month ago)
Target, just a bad as Walmart to employees if not worse with even crappier clothing selections and more expensive everything else...
Mixxmee xo (1 month ago)
I hate that cat n jack brand
Love is here (1 month ago)
I love tarjae´
Jayden Colour (1 month ago)
I mizs target 😭😭
bynumf (1 month ago)
I'm definitely gonna learn to talk that with my hands like this guy. I feel like shopping @Tar - jey now. 😃
Karen Elliott (1 month ago)
Target has nothing for a 68 year old woman. Clothing is a joke.
Uh Swav (1 month ago)
This is why millenials like target :)) well my gf and i do at least
Boostang (1 month ago)
Even as a kid I liked going to target for the toys and popcorn, now i go for the popcorn and cuz wifey wants to buy some clothes
Obed Esquivel (1 month ago)
Target is my favorite store ❤️
Wii shop Channel (1 month ago)
I prefer Target than Walmart because Target I go to it's clean and organized. Not like Walmart stuff is not organized
axnyslie (1 month ago)
The biggest mistake Target did was adding groceries and not increase retail floor space. This significantly reduced their product line especially menswear and shoes.
dosmastrify (1 month ago)
4:30 what is a min's line?
Garbage Human (1 month ago)
I love Target. You go in to buy one thing but you end up buying more
Rick Gross (1 month ago)
Target died a QUICK DEATH in CAnada. Such BORING stores. YOu walk in you see a SEA of TABLES from one end of the store to the other. Like shopping in a church basement.
Robert Chow (1 month ago)
Target sucks..hardly see anyone go to their super Target. Instead of competing with Walmart that have a grocery..it’s seems awkward feel of having a grocery store inside a clothing/merchandise store. Not to mention their unisex bathroom now..ugh
mathew mann (1 month ago)
Target lost many customers because of their insistence on transgender bathrooms
Isaac Kim (1 month ago)
"Where did you get those pants ... TARGET?" Will always be an insult in my book ala 1997.
Dshan1 Williams (1 month ago)
Love Goodfellow men's line and the improved chic home decor. Finally getting it rite again geesh
Jeffrey Richardson (1 month ago)
I like Target.
Em S (1 month ago)
Target funds the world's largest holocaust ever known to mankind (baby murder) by funding Planned Parenthood. Millions of innocent babies have been murdered at these mills...how can anyone support a criminal enterprise??? It makes you an accomplice...
*_•reshirm•_* (1 month ago)
goodfellow is amazing!!!!!
Red Zero (1 month ago)
Target is turning into Kmart. Have you visited a Target lately? Out of stock, messy, dark.
velvetice100 (1 month ago)
Target forces it customers to buy at a certain high price point and they are OFTEN OUT OF STOCK so for me as a customer Walmart wins😏
Greg T. (1 month ago)
Cornell, I think he’s killing it (keeping up with the curve), but it looks like he practiced what he’s saying in front of the mirror with his hand gestures.