Target had high hopes for its Target + Neiman Marcus collection to ignite early December receipts, but sales fizzled instead in a ho-hum holiday season for the retailer.
Target forgot "expect more, pay less" with the collection, said Amy Koo, an analyst with Kantar Retail consulting near Boston. Many items appeared to be too high-priced, and shoppers who were focused on getting a good deal weren't seeing the value, she said.
While initial reaction was good, few were buying the collection as the days and weeks went on. The entire line was discounted 50 percent on Dec. 20 and 70 percent on Jan. 1, prompting analysts and shoppers to wonder what happened.
The retailer is not giving up, though, on collaborations with designers, said Target spokesman Joshua Thomas said. It has a number of programs planned for 2013, including a Prabal Gurung collection that will debut Feb. 10.
But working with another retailer won't necessarily be in the mix.
"We continue to redesign the formula with every collaboration," Thomas said. "Not everything works. Each program and model is different."