Target is overwhelmed by rush for designer line
Target is a victim of its own success. The discounter drummed up so much hype around its exclusive, limited-time line by upscale Italian...
The Associated Press
NEW YORK — Target is a victim of its own success.
The discounter drummed up so much hype around its exclusive, limited-time line by upscale Italian designer Missoni that its website crashed and was down most of the day Sept. 13 when the collection was launched, angering customers.
More than a week later, some shoppers who bought the Missoni for Target line are posting on social-media websites Facebook and Twitter that they won't shop at Target again because their online orders are being delayed — or worse, canceled — by the retailer.
Brielle deMartino, 23, from Del Ray Beach, Fla., was so excited that she woke up at 6 a.m. on the launch day and spent $700 on Missoni clothes, a bike and plates. The next day, she got an email from Target that her online order was canceled. Then, she spent hours on the phone with Target customer-service representatives she describes as unapologetic.
"I have never been treated like this," says deMartino, who got the charges removed from her card after calling her bank and posted on Facebook and Twitter about the ordeal. "Instead of taking responsibility, they didn't care. I have always been pro-Target, but I don't want to give my money to a company like that again.'
Talk about having a bull's-eye on your back. Target became the discount industry's darling by making it cool to buy stylish clothes and trendy decorations at the same place you pick up toothpaste and paper towels. But recently, it has suffered from similar public-relations nightmares as its rival Wal-Mart Stores.
Earlier this year, Target had its first union election in what is seen as a precursor to more labor disputes nationwide. Now, customers are blasting Target on websites like Twitter at a time when Americans worried about the economy are easily being influenced by what their friends say on social-media websites.
"This was badly handled," said Robert Passikoff, president of Brand Keys, a customer-research firm that has an index that shows Target's image has taken a hit. "What was supposed to be engaging and delightful is now the opposite — disappointment."
Morgan O'Murray, a Target spokeswoman, said the company experienced unprecedented demand for the collection and is working on correcting problems.
"This demand impacted our Target.com site and affected the shipment and delivery of select guest orders," O'Murray said in a statement.
The Missoni collection was an attempt by Target to regain the cachet it lost among the fashion-forward crowd after it began focusing on expanding its food business. Target is among a few retailers who have partnered with high-end designers that create exclusive lines they can offer for a limited time at deep discounts.
The collections can spur demand by creating a sense of urgency to buy. Last year, Target scored big with a line created by Liberty of London, offering 300 items with the designer, which is known for its floral prints, and selling out of most of it in a couple of days.
The retailer tried to re-create that success with Missoni line, which featured stationery for $2.99 up to $599.99 patio furniture at a fraction of the cost of the designer's original works that can go for $595 to $1,500 and more.
Target also opened a temporary store in Manhattan at the start of New York Fashion Week on Sept. 8. On the night of the store's opening, Target hosted a party attended by Missoni-clad celebrities such as actress Elizabeth Olsen, the younger sister of the twin actresses Mary-Kate Olsen and Ashley Olsen. The temporary store, which spanned six blocks, was supposed to stay open three days, but closed after items sold out in six hours.
The buzz turned to frustration for some shoppers. About two hours after the 6 a.m. launch, many on Target's website came face to face with Target's mascot bull terrier and the disappointing news: "Woof! We are suddenly extremely popular. You may not be able to access our site momentarily due to unusually high traffic. Please stay here and we'll try to get you in as soon as we can!"
This happened throughout the day. Some who were patient got through. Those who weren't left the website disappointed.
Ben Rushlo, director of performance management at Keynote Systems, which tracks websites' performance, said that he couldn't remember the last time a site stayed down most of the day. He said usually, a website slowly deteriorates throughout the day — with minor glitches becoming more prevalent — before crashing.
"It wasn't your normal meltdown," he said.
Even some customers who got through complained that items disappeared from their online shopping carts. Some were unable to check out. Those who were able to buy breathed a sigh of relief, with some hocking their buys on eBay.com for more than double Target's prices.
But the celebration was short-lived for some. Twitter and Facebook are abuzz with customers complaining that they got emails from Target notifying them that their orders will be delayed or canceled altogether. The posts range from mild ("I'm waiting for orders and now get an email that some may not ship," to prickly ("Every time I see someone with Missoni for Target I get a little more mad.").
Target had planned to sell the line into October online and at all 1,700 U.S. stores. But many locations are sold out and the online pickings are slim.
Target had said it was replenishing merchandise, but that it would trickle in.
The debacle comes at a precarious time for Target. The chain, which has struggled to return to its pre-recession growth, is just beginning to benefit from its expanded grocery business and a 5 percent discount it gives shoppers who pay with a Target credit or debit card.
Target, based in Minneapolis, had been posting disappointing revenue gains, but it had a 3.9 percent second-quarter increase in revenue at stores opened at least a year — a measure of a retailer's health. That compares with a 2 percent first-quarter gain.
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