Target Case Study: Diversity Andrea Bowers Tristan Lazor

Company Background Target guests are “young, well-educated, moderate-to-better income families who live active lifestyles” The company now has over 1,700 stores nation wide Described as “an upscale discounter that provides high-quality, on-trend merchandise at attractive prices in clean spacious and guest-friendly stores”

Demographics Obese: anyone with a BMI over 30 Overweight: BMI between Obesity rates have more than doubled from the 15% in out of 11 states with the highest obesity rates are located in the South Obesity rates are above 25% in 38 states

In 2007, 32% of Texas high school students were overweight or obese It is predicted that in every state that rate will reach at least 44% by 2030 Statistically, obese and overweight people are usually from low-income households

Do women’s obesity rates vary amongst different races? Black population- 58.5% Mexican population- 41.4% White population- 32.3%

Narrows down to: Female minorities living in Southern states with middle to low incomes

African American: 43-inch bust, 37-inch waist, and 46-inch hip Hispanic: 42.5-inch bust, 36- inch waist, and 44-inch hip Caucasian: 41-inch bust, 34- inch waist, and 43-inch hip Asian: 41-inch bust, 35-inch waist, and 43-inch hip Average measurements of women ages 36-45:

Strengths #2 in top discount retailers, second only to Walmart One of the top 50 companies in the Fortune 500 list Large variety of products both in stores and online Fashion destination for young women One of the top gift card sellers in the United States

Weaknesses “Well-educated, moderate-to-better income families” does not include a large, diverse consumer market Specifically, there is a limited assortment of women’s plus size clothing in stores and online In a search for “plus size pants” on Target’s website, only 12 results are found- 6 of which are yoga or lounge pants Not a seamless channel between online and store inventories Many of the plus size styles are not available in stores

Women: 4,285 Juniors: 1,224 Plus Size: 374 Search Options

Opportunities By creating a new product mix for a more diverse consumer, Target can gain a new market and create more loyal guests May also create more revenue and continue to improve their reputation in the fashion industry

Threats In a more diverse area with different consumers, consumers may be lost if the product mix does not cater to all of the consumers needs Customers in more diverse areas may be willing to sacrifice an enjoyable, quality shopping experience for the cheapest price

Solution? Fashion forward, affordable plus size clothing to make shopping easier and more accessible for women over size 14

“The arms never seem to be proportional to the body of the shirts. I usually have to fork out a lot for a pair of jeans that fits right. Everything is either too short, or too baggy!” -Madison Terry, 17 of Carrollton, TX “Forget jeans, I mainly wear leggings and dresses because jeans are just a pain to shop for! At trendy places like Forever 21 and H&M, I can wear their purses.” -Lacy Morganti, 23 of Keller, TX Interviews

Plus-size shape wear and jeans are two categories lacking in Target’s product mix. Fit is the key to success in these categories. Including these products in the guest’s one-stop- shop may secure loyal customers for life. Suggestions $39.99 at ModCloth.com $30-$60 at ASOS Curve on ASOS.com

Incorporate plus size styles into the monthly designer shops Target is known for, such as Kate Young and Prabal Gurung Partner with designers who have knowledge in creating proper fitting, trendy garments for larger bodies Suggestions

Qristyl Frazier’s Mystique Collection

Monif C. Swimwear 2013

Strengths: -Creates a more diverse consumer market -May influence new loyal customers -Build a reputation in the plus size fashion world Weaknesses: -This change still doesn’t cater to every different female body type -Although Target is a clothing destination for young, fashionable women, it is not known as a place with a great plus size selection Opportunities: -Working with designers to create a seamless line that caters to both women’s and plus size categories Threats: -Competitors may take notice of this change and follow; This would create more competition amongst discount retailers

Conclusion To solidify a diverse market, Target must change their product assortment to better include plus size women. Locations where demographics include more minorities and lower income households would be the best to start this in-store change. Change in the product assortment could build a new and stronger sense of loyalty in consumers that would otherwise not shop at Target.

Bellafante, G. (2010, July 28). Plus-size wars. Retrieved from /2010/08/01/magazine/01plussize-t.html?pagewanted=all&_r=1& Begley, S. (2012, September 18). Fat and getting fatter: U.s. obesity rates to soar by Retrieved fromhttp:// idUSBRE88H0RA http:// idUSBRE88H0RA Denee, M. (n.d.). Add Plus Size designer Collaborations to Target. Denee, M. (August 1, 2011). My Top 10 Plus Size Shopping Haunts. The Curvy Fashionista. Edut, O. (n.d.) The Expanding Plus-Size Industry. Adios Barbie. /feature-articles/filling-out-fashion-...1 Haupt, A. (2012, March 13). Obesity in america: 10 fattest cities. Retrieved from citieshttp://health.usnews.com/health-news/articles/2012/03/13/obesity-in-america-10-fattest- cities Karen, M. (April 11, 2006). Target Made me Cry. Planet Feedback. back.com Landau, E. (2010, June 29). Obesity rising; southern states have highest rates. Retrieved fromhttp://thechart.blogs.cnn.com/2010/06/29/obesity-rising-southern-states-have-highest- rates/ rates/ Low-Income and Food Insecure. (n.d.). In Food Research and Action Center. Retrieved from people-vulnerable-to-obesity/ people-vulnerable-to-obesity/

Obesity and Overweight Adults. (2012, April 27). Obesity and Overweight for Professionals: Adult: Defining. Retrieved fromhttp:// Overweight and Obesity. (n.d.). In Food Research and Action Center. Retrieved from Petro, G. (February 28, 2013). Retailer/Designer Collaborations-The Missing Link. Forbes. Plus Model. (March 21,2013). Plus Size Designer Qristyl Frazier Launches. model-mag.com Target Addict. (July 20, 2010). The Plus-size Selection at Target. Target Addict. addict.blogspot.com/2010/07/tuesdays-rant-plus-size-selection-at.html Texas Nutrition. (2012, November 12). Texas Nutrition Data Obesity Prevention. Retrieved fromhttp:// Zernike, K. (March 1, 2004). Sizing Up America: Signs of Expansion From Head to Toe. NY Times. from-head-to-toe.html