Analysis: Target's problem isn't boycotts, DEI, or even prices

• Target has seen a drop in sales.
• Many have blamed that on the retailer's political stances.
• Its actual problem is much more basic.

Back when I served as general manager for a large toy store, I often spent the weekends interacting customers. Many of them were regulars and I welcomed them back, perhaps asking them a question, or maybe sharing a new item I knew they would want to see.

New customers were greeted with an offer of a tour of our very large store. There was no sales pitch; the goal was simply to make people feel welcome so they would enjoy visiting us.

During the holiday season, we would do over $100,000 in sales on many days, and the lines could back up. To help with that, we opened a second register, and when people paid cash, I would do the transaction on paper and enter it into the register later.

If things got really bad, we might start handing out free coffee, popcorn, ice cream bars, or whatever else we had.

It wasn’t about selling more stuff that day. Instead, the goal was to make sure the experience in our store was always pleasant.

We could not always stop lines from forming, but we were always visibly trying to deliver the best experience possible, and that’s what made people come back when it wasn’t a traditional gift-giving season.

Target no longer does that. The chain, which is laying off workers at the corporate level, having just changed its CEO, seems to be searching for answers as to why sales are down, and it’s missing the obvious.

Target has a checkout problem

I used to be a Target regular, someone who just walked around the store looking at stuff. Maybe I'd buy something, or maybe I'd get a coffee at Starbucks, but I liked being at the retailer, and buying stuff was easy enough when I wanted or had to.

That's no longer the case. On my last few visits, across multiple locations, lines back up for 10-15 minutes, and the self-checkout machines only allow a limited number of items and seem to require a manager's intervention for at least a quarter of the transactions.

The chain won't say that it has fewer checkout lines open, but it has clearly degraded the shopping experience.

It's easy to blame Target's falling sales numbers on woke boycotts and core customers being angry about caving in to President Doland Trump on DEI issues.

The reality is that most people do what's convenient for them, and boycotts almost never work. If Target had a better shopping experience than Walmart or Amazon, then people would shop there.

It no longer does, and both its chief rivals often beat it on price.

Target was where the cool kids shopped. A better, classier chain that didn't have the long checkout lines for which Walmart is famous.

That's simply not true anymore. Plus, I can order ahead at a regular Starbucks and buy things from Amazon while waiting to pick up my coffee.

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Do I politically agree with everything Starbucks and Amazon do? I don't, but not enough to impact making the easiest possible choices when it comes to buying things.

If Target made in-store shopping pleasant, people would come back.

Self-checkout needs work everywhere

Target usually has one employee stationed near self-checkout to help customers — that's often not enough.

"While nearly two-thirds of consumers frequently use self-checkout machines at the grocery store, nearly 75% stated difficulty in entering goods and frequent overrides were their biggest concerns with the technology," according to a survey by Retail Today.

The survey showed some other things as well:

• Nearly 80% of consumers needed assistance at least once during their self-checkout experience, and almost 30% of consumers using self-checkout were pulled aside by store personnel to check their purchases.
• Nearly 60% were more likely to use self-checkout if technology improvements (system simplification, automated entries, and better accuracy) were deployed.
• Nearly 90% of respondents visit convenience stores at least once a week for grocery items.
• Nearly 25% said the fastest possible checkout would also significantly improve their experience.

"The primary problem relates to scanning — delays that come from difficult-to-scan items, weighing errors and double-scanning. Consumers also encounter difficulties when applying coupons and paying, and waiting for an attendant to fix issues appears to be a major shopper pet peeve," Tom Ryan wrote at RetailWire.

Target does know how to do this

During last year's Christmas season, Target did focus on in-store experience, to mostly strong reviews.

"Strong merchandising and great displays can most certainly help to drive up sales. And Target seems to have pulled out all of the stops this year, so I expect its fantastical forest theme will help. That said, a lot will also depend on good operational control, meaning things like in-stocks (something Target isn’t great on), sharp price points, and the right mix of products are all critical," GlobalData Managing Director Neil Saunders shared on RetailWire.

Gerogeanne Bender, a retail consultant and author, believes that in-store experiences matter.

"I am all about the in-store experience and I love that Target is making holiday shopping magical and immersive. There is a reason shoppers are drawn to Macy’s flagship stores like Herald Square in New York and State Street in Chicago. These stores scream Christmas. You’re not going to get that online," she wrote.

Roland Gossage, who has over 20 years of experience as a retailer, did raise a cautionary flag for the chain.

"While Target’s focus on immersive, themed holiday events and in-store experiences will help draw extra customer attention, it won’t be what converts to sales. These tactics can help get customers in the door, but ultimately, they stay because of a quality shopping experience – easy-to-find products, affordable prices, quality deals, and flexible payment options," he wrote.

He warned that Target needs to get the basics right.

"Target will need to go beyond the novelty of these in-store experiences and ensure that at the end of the day, they’re delivering on these key factors of a good retail experience first. That extends to online and mobile shopping as well," he added.