How Target Is Bucking Industry Trends and Growing in Mass Market Beauty

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Target's beauty strategy has led growth at the retailer writ large, despite broader declines in the mass market.

Per the company’s last earnings call, beauty helped drive a 2.7 percent growth in the second quarter, alongside fashion, with net sales totaling $25.5 billion and beating Wall Street expectations. Within that, beauty rose 9 percent on a comparable basis, on top of double-digit growth a year ago.

Among a slew of other factors, Gomez attributed Target’s growth to the right assortment — at the right time. “50 percent of our assortment is under $10, but value is important in the sense that consumers are looking for high quality products — they’re also shopping prestige,” Gomez said. “It’s about providing the range of value across price points and also offering quality product at an affordable price.”

In some cases, that includes thinking small and homing in on microtrends to lead the market toward broader areas of growth. “Trends come from social. On TikTok, the Unbrush was trending. We jumped on it, and within eight weeks, had a display of the Unbrush in-store. We’ve since sold 27 colors; it’s been a huge hit and a big driver of growth.

“We’re their number-one brand with over 20 percent of their entire category,” said Tarang Amin, chief executive officer of E.l.f. Beauty, in a recent interview. Another key area of growth is its minis business, which has more than doubled in the last three years. The opportunity there, Gomez said, is manifold.

 

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