TARGET BROADENS HAIR CARE PRODUCT MIX
Byline: Andrea M. Grossman
NEW YORK — Target’s red tape is losing its stick.
By expanding its scope to develop hair care brands linked to fashion and by loosening the reigns on new product entry qualifications, Target’s hair care department is poised to become a destination area of the store.
Target is capitalizing on its $1 billion licensing deal with apparel manufacturer Mossimo by creating a 28-stock-keeping unit line of shampoo, conditioner, styling and finishing products under the Mossimo brand name.
Industry sources said the hair care line was designed so that it would correspond with Mossimo’s softlines qualities. For example, soft-touch bottles were designed so that a texture feeling was experienced when picking up the bottle. A muted palette follows the clothing brand’s spring color trends. Even the hair care line’s names are linked to clothes: Shampoos are called “Wash” and conditioners are dubbed “Rinse.”
“They’re playing into the fabric thing,” one source said.
Sources also said Target will merchandise the Mossimo hair care line, which breaks in stores Feb. 15, on endcaps for its first two months. Based on the success of the line, certain sku’s would then be chosen for Target’s permanent hair care planogram.
As previously reported, Target signed a three-year, $1 billion licensing deal with Mossimo, the once-hot department and specialty store label, last March to supplement its list of apparel brands. Mossimo apparel hits Target stores this month.
Another new brand expanding Target’s mix is Charles Worthington’s Results line of shampoo, conditioners and styling products. Results is widely considered a “designer line” for the mass market and is priced at $6 per product. Approximately 800 Target stores across the country will carry 14 sku’s of the line this April, which has been sold exclusively in Walgreens since March 1999.
Keeping competitive, Walgreens is doubling the amount of space it dedicates to Results, according to Ben Greer, marketing manager for London-based Charles Worthington LLC. Shelf space will grow from 3 to 6 feet this June, pumping up the Results presence to 19 sku’s from 11 in Walgreens stores.
The addition of Results to Target’s mix signals how the retailer is taking an advanced merchandising approach to its hair care department. Target has experienced success in such displays of creativity with its Michael Graves line of housewares and Phillipe Starck furniture.
“Up until now, they’ve been somewhat structured in hair,” said one industry source.
A new packaging color theme that features soft shades of orange, pink and blue was designed to make Results pop off shelves. Elliptical shaped bottles for the shampoos and conditioners will stand out against traditional cylinder shaped bottles.
Both the Target addition and the Walgreens expansion looks to triple Results’ annual sales volume. According to industry sources, Results is slated to generate between $20 million to $25 million by yearend, up from approximately $7 million last year.
Greer has not laid out advertising plans for Results, but he assured Worthington would be an aggressive supporter in Target circulars.
“We thought it would better to partner with the individual retailer,” Greer said.