Target has announced that they are introducing a new
in-store brand called Smartly. The line
will feature a variety of products in smaller sizes. Think single roll of toilet paper. And most items will sell for under
$2.00.
Their target for the line is cost-conscious Gen
Z/Millennials who are either college students or starting their first job. And they are opening smaller-format locations
near college campuses. (Forbes, 2018)
Dollar stores are booming so it makes sense for
Target to try to cash in. Interestingly
research shows that dollar store customers fall into two different age groups -
under 24, which are the Gen Z's and Millennials and 55 - 64, which are the Baby
Boomers. So their target selection makes
sense.
But, the thing about dollar stores is that they are a
rip-off because they charge more on a per unit basis. So while one roll of toilet paper does indeed
cost less than the usual package of four, if you do the math you are paying
more for that one roll than you would for each of the four. (Stone, 2017)
So, what's going on here? What have we
learned about consumer behavior that can explain going to the dollar store?
Do consumers realize that they are actually paying more? If so, why would they keep going? Do you think that Gen Z's/Millennials will
switch to Target? What about Boomers? Do you shop at the dollar store? Will you continue to do so? How about Target? Will you shop Smartly?
Forbes, T. (2018, October 8) Target Zeros In On Budget-Conscious
Millennials With Smartly. mediapost.com. Retrieved October 9, 2018, from https://www.mediapost.com/publications/article/326175/target-zeros-in-on-budget-conscious-millennials-wi.html
