Target to Stay Open Late
August 21, 2014 Leave a comment
Target has decided to keep half of its U.S. stores open past midnight in order to cash in on late night shoppers. Traditionally, Target’s 1,800 stores open at 8 a.m. and close at 10 p.m. Monday-Saturday, closing at 9 p.m. on Sunday. Its new expanded hours will give night owl shoppers a few extra hours each night, hopefully bringing in more revenue for the retailer, which has struggled since last year’s massive security breach during the holiday season.
Although the added hours aren’t particularly heavy in traffic, Target feels that enough people will show up to make it worth keeping the store open later. Currently around 0.3% of American shoppers will shop after 10 p.m. on a typical night. Wal-Mart keeps 70% of its stores open 24 hours a day, and Target is still trying to repair its lagging foot traffic in U.S. stores.
The new extended hours for stores will be starting this month and continue through the holidays, when the company will then re-evaluate and see if it wants to continue the late night extravaganza. Target isn’t the only large retailer fighting lagging sales; many others are also having difficulties in lieu of the fact that more shoppers are choosing the convenience of shopping online or smaller businesses over large department stores.
Amazon is one of the companies reaping the benefits of the shifting market balance. The largest ecommerce platform in the world, Amazon brought in more than $19 billion in revenue in the most recent fiscal quarter. Other huge ecommerce sites are also coming into the market, including the recent Google Express.
“We did a lot more analysis into how big an opportunity this is, and there is a really big opportunity here,” Target spokesman Eric Hausman said. We’ll see what, if any, benefits Target reaps from its extended hours come first quarter 2015.