Don't Forget Stuffy

When my daughter was between the ages of 0-2, we practically lived at Target.

Need diapers, cold meds, or butt paste? Target.

And every time we walked in looking to buy one item, we’d leave with new comforter covers, hoodies, or plushies. Lots of plushies.

So, to my impressionable daughter, Target became known as the “Don’t forget the stuffy” store.

I bring this up because in 2019, Target implemented a curious nationwide strategy: curbside pickup.

From 2019 to 2022, aided by a global pandemic, revenue nearly grew by 40%. That’s an extra $31B.

But in 2023, according to MSNBC, it projected full-year earnings per share between $7.75-$8.75, well below Wall Street’s expected $9.23 per share. Why?

Revenue was down because Target concluded that online shoppers were more budget-conscious. No longer were shoppers browsing the aisles to pick up additional items.

So while Target is by no means in danger, it’s spent most of its 2023 and 2024 attempting to right the ship — figuring out how to get more shoppers back inside stores.

While it’s not an apples-to-apples comparison, I see this same problem inside most of the businesses I consult for:

“Short-term monetization hurts long-term gains.”

While Target sped up convenience, it hurt their average customer spending.

Yes, you can charge for a $37 masterclass, but how many fewer potential clients experience your expertise because of the cost of entry?

Imagine how many more clients you could serve if the entry point was effortless. If you have a high-ticket offer, isn’t the loss of a little now worth the benefit of a lot more later?

Cheers,