How Target is challenging Amazon

How Target is challenging Amazon

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How Target is challenging Amazon
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As it redesigns its stores, Target is returning to offering fashionable merchandise at decent prices. If it can keep that momentum going, it will help differentiate the company from its peers, including Walmart, Amazon and Kroger.

Nestled inside Target's Minneapolis headquarters, racks of unfinished clothing line the walls. In another room, sketches and spots of color are hung for inspiration. Walk down the hallway and you'll feel like you've arrived at an HGTV set with bedrooms, living rooms and kitchens on display. This is the creative hub of Target's internal brands – a key part of the retailer's turnaround.

Scattered around the grounds are chemical mixing labs and an alcove with a handful of 3D printers. About 550 employees work together to develop about 40 private labels, such as Goodfellow & Co. for men's clothing and Up & Up for cleaning products, to life.

Meetings take place around a dining table in Target's Made By Design room, which is furnished with that label's kitchen appliances and other kitchenware. And “Targeters,” as they are sometimes called, return from fashion shows or visits to foreign stores, bringing with them items collected during their travels. Every week, so-called kid influencers are led in and out of the Cat & Jack room to provide feedback on the clothing styles being developed for the coming year.

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How Target is challenging Amazon and Walmart CNBC

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