One of the most popular and respected companies this side of the retail industry is Target (TGT) , and for good reason.
The Minneapolis-based company, which boasts close to 2,000 stores across North America has participated less in the rat race that consumes Walmart (WMT) and Amazon (AMZN) .
Related: Target just quietly released beloved new item (it's selling out fast)
As of now, it does not offer a paid membership option (though that may soon change) like its two larger peers. It doesn't offer streaming or anything that might remotely look like it. Nor does it have as robust an online and delivery presence, though its 2017 acquisition of Shipt for $550 million certainly bolsters its fulfillment efforts.
Rather than rapidly scale up to attempt to outdo Walmart or Amazon, Target has been quietly and deliberately building out its own version of a customer-pleaser. And that has proved to be a winning model in recent years.
This is in the form of Target's robust in-house brands. As of February, the retail giant has 50 of what it calls its "owned," brands, which are exclusive to Target. Some of them are now household names, and chances are, you've got a product or two lying around in your pantry or powder room.
Some of their best-known and most successful owned brands are:
- All in Motion (activewear)
- Casaluna (bedding and bath linens)
- Everspring (organic and sustainable cleaners)
- Good & Gather (food and snacks)
- Hearth & Hand with Magnolia (interior decor by HGTV's Joanna Gaines)
- Goodfellow & co (menswear)
- Market pantry (food and pantry staples)
- Room Essentials (low-cost home and dorm decor)
- Smartly (low-cost cleaners)
- Sonia Kashuk (low-cost makeup tools and accessories)
- Threshold (home decor)
- Up&Up (household staples)
- Xhilaration (womens and junior's basics)
Many of Target's best-selling lines include home decor goods, personal care, cookware, formalwear, maternity wear, athletic apparel and swimwear, party supplies, and more. It's a winning model, since often these labels are offered at lower prices than external brands, and Target shoppers tend to buy outsized amounts of them.
All in Motion, for example, brought in $1 billion of revenue in the year following its rollout. In total, Target's exclusive brands bring in $30 billion in annual sales, and the retailer continues to launch new brands and grow existing ones.
Target announces new collaboration
But it's not just the retailer's owned brands that propel its growth. Target also has a keen eye for external brands. It regularly launches blowout partnerships with some of the most sought-after labels at lower-than-average prices, which results in frenzied shopping behavior.
Its most recent partnership with Stanley resulted in a near-instant sellout of the beloved $40 tumblers — with many being resold online for many times original sticker price. Similar successes followed when Target partnered with lifestyle and fashion brand Lilly Pulitzer in the past.
It's understandable why these partnerships work. It brings high-demand brands that customers might ordinarily have to go out of their way (and exceed their budget) into the store frequented by millions of people each day. And, presented with the convenient and cost-effective option to take home a piece from an aspirational brand of their own, most customers oblige.
So Target's most recent announcement that it would collaborate with high street fashion designer Diane von Furstenberg is sure to delight more than a few female shoppers.
Diane von Furstenberg, or DvF as she's known in the community, has been a fashion staple among fashion aficianados for years. She's credited with inventing the wrap dress, a flattering silhouette for nearly every body type, and is often associated by her bright and lively prints and patterns. Most of those dresses, however, run between $300-$500, sometimes much more.
Target's collection, however, will feature pieces mainly within the $4-$50 price range. It will feature about 200 pieces, which will include swimwear, active wear, matching mother-daughter pieces, pajamas, and — of course — iconic wrap dresses. Target will also feature a DvF home decor line, too. The line will drop beginning March 23, 2024 and is expected to sell out quickly.
