Retail giant Target has inked a partnership with jewelry brand Kendra Scott to offer exclusive collections of earrings, bracelets and other accessories.
Under the new agreement, announced Tuesday (Sept. 12), Target will offer vibrant jewelry from Kendra Scott, both online and at approximately 150 of its stores. The debut collection, featuring more than 200 items with price points ranging from $15 to $60, is scheduled for release on Oct. 22.
This timing synchronizes with customers who are commencing their preparations for holiday shopping and looking for early gift choices.
The large-scale retailer chose not to disclose the financial details of the agreement but characterized it as “a lasting strategic partnership.”
This effort is integral to Target’s plan to reinvigorate its attractiveness, strategically coordinated for the crucial holiday season. It comes in response to the realization that its prior initiative targeting millennials has faced challenges, particularly as student loans repayments are set to resume.
In August, PYMNTS highlighted the continued influence of consumer sentiment on spending behavior, as evidenced by Target’s Q2 2023 earnings release on Aug. 16. The company’s second-quarter results fell short of analysts’ lowered expectations, with a 5.4% decline in comparable sales, primarily in discretionary product categories. However, there was a partial offset from increased sales in essential items, beauty products, as well as food and beverage purchases.
J.P. Morgan analyst Chris Horvers had predicted this decline and its underlying factors in a client note from June, which was obtained by MarketWatch.
“We continue to believe that the consumer is broadly weakening while the share of wallet shift away from goods,” Horvers said. “Target has been giving back [market] share on a one-year view, and we believe this share loss could accelerate into back to school and linger into holiday given consumer pressures and recent company controversies.
Read more: Predictions That Student Loans Would Impact Target’s Earnings May Have Hit the Bull’s-Eye
That’s not to say Target hasn’t been trying to win back market share.
The retail chain has been implementing various consumer-focused initiatives. These include dedicating store space to feature products from well-known national brands like Levi Strauss, Disney and Apple. Moreover, an increasing number of its stores have integrated mini Ulta Beauty shops. Whether that works remains to be seen.
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