Although Target has been releasing exclusive designer collections at its stores lately, this week's release hit the jackpot and made headlines.The limited-edition Missoni for Target line hit stores Tuesday, purveying the high-end label's merchandise for a mere fraction of the hundreds (or even thousands) of dollars it usually commands at luxury retailers.
Demand surged beyond the discount retailer's expectations and capacity. Target said activity at its stores looked reminiscent of Black Friday, which pretty much says it all. At some stores, the Missoni articles sold out in minutes; voracious shoppers waited in long lines to make their purchases. Unfortunately, the fact that Target's website crashed created customer anger alongside the retailer's much-needed buzz.
That online crash is a definite downside for Target, which just recently stopped relying on Amazon.com
Big, buzzworthy launches like this one will help Target compete against rivals like Wal-Mart
Our recent economic woes have a silver lining, at least from Target's point of view: They encourage more consumers to trade down to Target instead of paying up at retailers like Nordstrom
Desperate Sears Holdings
Target's currently trading at a mere 12 times forward earnings, and a reasonable 1.1 PEG ratio. Much like its cheap-chic wares, Target's stock looks like a steal -- particularly if it can continue replicating the mad magic it delivered via Missoni for Target.
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