MINNEAPOLIS (WCCO) — Target is rolling out several new lines this year, and one is far from being a “Fixer Upper.”
The store is teaming up with Chip and Joanna Gaines, who are the hosts of the popular HGTV show.
The new “Hearth & Hand with Magnolia” line will be in Target stores and online on Nov. 5, just in time for the holidays. It will have Magnolia’s signature modern farmhouse look.
And true to Target’s style, most items will be under $30. Unlike most of its other celebrity collaborations, this will be a multi-year partnership.
It’s just one of the big in-store changes the bullseye is making to bring back customers.
Chip and “Jojo” as they are known to viewers came up from Texas to make the announcement to Target employees in their fall meeting. A big announcement for one of the most popular TV couples, but just part of what Target has in mind.
The renovation experts will sell tableware and gifts.
But this isn’t just a friendly deal. It’s a strategic one, according to retail expert and University of Minnesota Professor George John.
“The core issue is that their sales are stagnant and their margins are taking a beating because Amazon keeps lowering the margin on everything,” John said.
Target, whose sales are up 1.3 percent, is trying to crawl out of the recent retail trench. They are adding more boutique stores and liquor sales.
They’re even changing their look, in many stores changing the floors to published concrete and the lights to LED.
And Hearth and Hand is one of 12 house brands the company is rolling out.
“These are all private labels which means by definition you can only buy them at Target, so it stops the instant price comparison – here’s the Target offering, here’s the Amazon offering,” Professor John said.
And he says home goods and apparel pull people into stores, which is spot on for Target’s goal.
John says the down side for these store brands is if the namesake loses their star power. For now, it seems people are excited. Chip and Joanna’s online announcement has more than 10 million views.
Speaking of Target, they are going to hire more holiday help this year than last.
If you’re interested, here is how you can apply.