Tuesday, July 10, 2012

(BN) Target Teams With Neiman Marcus to Offer Luxury Brands

July 10 (Bloomberg) -- Target Corp. is partnering with luxury chain Neiman Marcus Group Inc. to offer goods from designers such as Tory Burch and Diane von Furstenberg in a bid lure more customers with exclusive products.

The limited-edition collection will debut on Dec. 1 and include more than 50 items from 24 designers priced from $7.99 to $499.99, Minneapolis-based Target said today in a statement. Other designers include Jason Wu, Carolina Herrera and Marc Jacobs.

The second-largest U.S. discount retailer pioneered offering exclusive goods from designers more than a decade ago to differentiate itself from competitors such as Wal-Mart Stores Inc. In May, it began a program that offers gourmet dog treats, home goods and other products from small U.S. boutiques. Last year, demand for a collection from Italian fashion house Missoni crashed Target's website.

Target has been searching for ways to boost revenue within current stores after slowing U.S. openings before an expansion into Canada next year. The retailer has introduced fresh food areas that offer fruit, vegetables and ready-to-eat meals. It's also implemented a rewards card that offers 5 percent off purchases. Revenue gained 5.8 percent to $16.9 billion in the quarter ended April 28.

Dallas-based Neiman Marcus, the retailer owned by Warburg Pincus LLC and TPG Capital, increased sales 7.5 percent to $1.06 billion in the quarter ended April 28.

Neiman Marcus Chief Executive Officer Karen Katz has been working to broaden the retailer's appeal to younger, less wealthy customers. The chain recently incorporated its separate Cusp contemporary fashion store concept into its main locations.


No comments: