Why Apple Is Forming A Tighter Alliance With Target
Apple and Target are strengthening their alliance as the holiday season approaches as Target adds more shop-within-a-shop Apple stores nationwide, a move that is expected to boost sales for both parties.
Target is in the process of reinventing itself as it slowly works through massive remodel projects. And as a result, the company is boosting partnerships with other large retailers. The latest news in this string of changes is that its relationship with Apple will deepen as we enter the holiday season.
Shoppers at roughly 1,000 Target locations have seen the remodel results firsthand. One of the key focus areas for the retailer was to include shop-in-shop experiences. So, rather than dedicated shelf space for a particular brand, customers can feel like they are entering an entirely different store.
The remodeled locations feature shop-in-shop areas for brands such as Ulta Beauty, Disney, and Apple. The Apple stores started popping up in select Target locations at the beginning of 2021. But now, that number has tripled.
Out of the 2,000 Target locations nationwide, 150 now have an Apple shop-in-shop. However, the two retailers wanted to deepen their relationship beyond the enhanced shopping experience. So, Target is making additional changes to its retail footprint.
On Wednesday, they announced that Apple products would get twice as much space in Target stores as in other retailers. It is welcome news to Apple fans, as they can theoretically do all their shopping in one location now. But it comes at a curious time.
Supply chain woes hit every sector during the pandemic, and the tech company was not immune from the problems. It has struggled to regain stability in its manufacturing process. And its troubles have worsened with the latest round of pandemic-related factory shutdowns in China.
But Apple’s struggles have not weakened Target’s resolve to drive more customer traffic into its stores during the holiday season. According to Fox Business, “the moves are the latest sign the retailer is looking to capitalize on the popularity of iPhones, MacBooks and other Apple products to pull in more shoppers to its big-box locations during the last few months of the year.” Whether they are successful in the current inflationary environment will remain to be seen.
The company’s COO, John Mulligan, held a conference call in August after the second quarter earnings report got released. In it, he acknowledged the potential roadblocks both companies may encounter in these last few months. He said, “conditions remain highly unfavorable when compared to the years before the pandemic.”
Mulligan continued, “and we’re mindful of the continued risks in the months ahead, including potential slowdowns at the West Coast ports, a reversal of the recent decline in energy costs, and the possibility of additional COVID-19 lockdowns in China.” But the leadership at both companies hope to overcome whatever challenges they face. They are even sweetening the deal for holiday shoppers.
Whether you have one of the newly remodeled stores near you or not, you can take advantage of the deepened relationship. Target’s loyalty members got the great news that they can now get a four-month free trial of Apple Fitness+. However, that’s not the only perk.
They will also find unique, special offers on some Apple Services. So, keep an eye out for deals on things like Apple Music. And if you are not a loyalty member, consider joining, even if just to take advantage of these offers.
