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Target + Neiman Marcus And A Lesson In Multichannel Retailing

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Target is about to launch its most ambitious merchandise scheme to date -- the Target + Neiman Marcus Holiday Collection on Dec. 1 -- but it's really the culmination of a year-long effort by the company to evolve into a multichannel retailer.

That's exactly what Target is calling itself, per a new video posted on its "A Bullseye View" site offering a behind the scenes look at Target. Unlike most of the promotional items retailers put out, this one has the ring of truth to it.

Target CEO Gregg Steinhafel fired off a note to suppliers demanding they step up the pace of innovation, provide more exclusive merchandise and lower prices in order of the retailer to better compete with online retailers. It was a directive to stem showrooming -- where shoppers use physical stores to try out products and get information before buying elsewhere online for a lower price. In just a few short months, Target had a multifaceted holiday strategy ready to go.

There are new shops featuring a revolving showcase of exclusive merchandise from small retail shops and boutiques, items unique to Target a new to its shoppers.

Target's  “Top 20” toys for the holidays are displayed  together with QR codes, letting shoppers an item then buy it online, immediately or later, complete with free shipping. There's an aggressive price match policy in place, and embedded QR codes in print ads, TV spots and even bus shelters -- for easier shopping from mobile devices.

And now there's Target + Neiman Marcus. The collaboration involves multiple brands, retail and fashion with gift items from 24 well-known designers, all members of the Council of Fashion Designers of America (CFDA). Its launch on Dec. 1 is driving an extraordinary amount of publicity for the retailer during the slight lull after Black Friday and timed to drive traffic to stores and Target.com in the early weeks of December, before the real panicked shopping begins just before Christmas.

Plus, Target gets the added cache of pairing its name with Neiman Marcus, the paragon of luxury. Target may be a discount store, but it has always reveled in its role as a purveyor of cheap chic. Neiman's is decidedly not cheap, and Target's used of technology this season is no small thing.

“Ultimately, to be able to engage a brand wherever and whenever you want is where we’re headed,” says Jeff Jones, chief marketing officer, Target. It’s also the main reason Target is focusing on creating a seamless shopping experience, both online and offline, according to Casey Carl, president of multichannel.

It's unclear if, or when, these efforts will translate into sales. Target reported disappointing sales for November, thanks to super-storm Sandy and the havoc it wrecked. Sales at Target stores declined .1% while same store sales (a measure of growth) fell 1.8% compared to November 2011.

But that was before a Thanksgiving day opening, Black Friday, Cyber Monday and Target + Neiman Marcus. Being multichannel is important, but whether it will pay off remains to be seen.