For years, Target occupied a unique place in retail. It offered low prices, but shoppers often viewed it as a step above competitors like Walmart.
Target was the store where customers could pick up paper towels and laundry detergent but also leave with a stylish lamp, trendy home décor, or a designer collaboration they never planned to buy.
That reputation even inspired the tongue-in-cheek nickname “Tar-jay,” a playful way of pretending a trip to Target was a luxury shopping experience.
While nobody actually confused the retailer with a high-end department store, the joke reflected Target’s brand — affordable but fashionable, and maybe even a touch bougie.
In recent years, however, that image has faded. Target has struggled with slowing sales, inventory challenges, and growing competition from Walmart, Costco, Amazon, and specialty retailers.
Consumers squeezed by inflation have also become more selective about discretionary spending, making it harder for Target’s merchandising strategy to stand out.
Now the retailer is trying to recapture some of that premium appeal. And it’s starting with one of retail’s most valuable customer groups: new parents.
Target is betting big on babies
Target recently announced a significant expansion of its baby department, introducing a broader assortment of premium products, exclusive brands, and upgraded shopping experiences aimed at families with young children.
The assortment includes strollers, car seats, nursery products, feeding accessories, and wellness items from well-known national brands, alongside Target’s private-label offerings.
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The retailer is also experimenting with new in-store services designed specifically for parents.
Speaking during the company’s first-quarter earnings call, Chief Merchandising Officer Cara Sylvester explained the strategy.
“We know the value we can deliver by helping busy new parents find the products they want and need to keep their baby happy, healthy and safe,” she said.
“We’re investing to do just that with a thoughtfully curated assortment of trusted owned and national brand products, an elevated in-store experience and in select stores, new premium services we’re testing, including a baby concierge.”
The new concierge service is designed to give shoppers personalized assistance with products that often require more research than a typical retail purchase.
Buying a stroller, car seat, or crib can feel overwhelming, particularly for first-time parents. Providing knowledgeable employees who can answer questions may help Target differentiate itself from competitors that rely more heavily on self-service shopping.
Target’s not afraid to push the limit on price points
Even in its glory days of appealing merchandise, Target was typically intentional about keeping its prices affordable. But the company is taking a different approach with its lineup of baby products.
Target’s new collection features high-end brands such as UPPAbaby, Stokke, and Bugaboo, some of which carry a $1,000 price tag.
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In offering high-cost products, Target is taking a risk. At a time when it’s trying to win back customers, it could alienate shoppers who continue to see the store as a moderately priced alternative to Walmart.
Still, focusing on the baby category is a smart play for Target overall.
New parents represent one of retail’s most valuable customer segments because they make frequent shopping trips and often develop long-term buying habits.
Once a family begins purchasing diapers, wipes, clothing, toys, food, medicine, and household essentials from a particular retailer, they’re likely to continue shopping there as their children grow.
For a retailer trying to restore the premium reputation that once made “Tar-jay” a compliment, catering to new parents may prove to be one of its smartest bets yet.
Maurie Backman owns shares of Target.
