Dive Brief:
- Target announced Monday that it is tripling the number of Disney stores within its locations to over 160 ahead of the holiday shopping season.
- Both companies announced the launch of 25 Disney stores within Target in 2019 with an additional 40 toy shops planned for 2020. The initial 750-square-feet store formats included music, interactive displays and photo opportunities.
- Through the expansion, even more Target shoppers will have access to Disney products such as Disney princess toys and Star Wars exclusives.
Dive Insight:
Target may be looking to cement its place in the toy category through the expansion of Disney toy stores as the holiday season creeps in and especially with the absence of specialty big-box retailers like Toys R Us in the space.
"We're seeing more guests shop for toys at Target than ever before, and whether it's Bullseye's Top Toys or finding joy with one of the 1,300+ exclusive toys and games, guests are choosing Target for our inspiring, easy and affordable gift-giving experience," Nik Nayar, senior vice president of hardlines at Target, said in a statement.
Department store Macy's also appears to show a desire to grow in the toy category. Macy's is planning to roll out 400 Toys R Us shop-in-shops beginning 2022, according to a joint announcement last week.
Through partnerships similar to that of Disney, some argue Target is taking the place traditional department stores used to hold, building engaging vignettes in stores and partnering with top designers on merchandise.
Ulta Beauty opened its first of 800 shop-in-shop locations at Target this month, allowing shoppers to purchase premium beauty brands like MAC Cosmetics, Morphe, Urban Decay and others on their next Target run. Back in February, Target also announced it is rolling out dedicated Apple shops within 17 of its stores, with plans to grow that number this fall.
These partnerships can be beneficial for both parties involved. For companies like Ulta, for instance, opening a mini shop at Target means further deepening loyalty with its existing customers and potentially acquiring new ones. In Target's case, becoming a one-stop shop means gaining more market share in certain categories.
Purchasing Disney, Ulta and Apple products through Target also gives consumers access to the mass merchant's fulfillment services such as Order Pickup, Drive Up and Same Day Delivery with Shipt. Target employees assigned in Ulta and Apple shop-in-shops will receive specialized training to provide consultation services.
