Big store Target company (NYSE: TGT) now owns 10 brands that generated at least $ 1 billion in sales last year after the company said Monday morning that its new brand All in Motion had crossed the threshold.
What happened: Target’s All in Motion brand was launched about a year ago and was well positioned to address a shift in demand for clothing amid the Covid-19 pandemic.
The shift to work from home and stay at home has meant that consumers have switched to more casual and comfortable clothing.
“We like to joke about it internally, saying it has become our customers’ favorite workwear, not just workout clothes,” Jill Sando, Target’s merchandising manager for style and brands owned, told CNBC.
Target’s workout brand is much cheaper than its rivals, as most clothing and accessories cost less than $ 30. In contrast, training pants from Lululemon Athletica Inc (NASDAQ: LULU) can reach almost $ 100.
Related link: Online retail sales provide favorable winds for Amazon
Why this is important: Target’s strategy of focusing on its own brands as a differentiator appears to be paying off. In fact, the company continues to double its successful strategy, as it owns four brands that generate over $ 2 billion in sales.
Over the past five years, Target has launched over 30 of its own brands in key categories like apparel and home.
And after: Target aims to outperform high-end clothing and leisure brands, Sando told CNBC. To achieve this, management will not change its formula of focusing on quality, style and more inclusive sizing at a lower price.
Some analysts remain bullish on Target’s strategy of standing out in the competitive landscape by giving consumers a reason to shop at its stores.
“The one-stop-shop trend continues because what the customer has learned is that they don’t have to go to six different places,” Stacey Widlitz, retail consultant for SW Retail Advisors. “And they don’t want to go to six different places anymore.”
Action on TGT prices: Target stocks were trading up 1.74% to $ 192.23 as of the last check on Monday.
Photo courtesy of All in Motion.
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