Private Label Expansion Key To Target's Future Growth Plans
Target has raised the curtains on plans to invest in its guest experience and long-term growth by moving forward on several initiatives that include growing its private brand assortment and the reintroduction of its Target Circle membership program.
In 2024, Target said it plans to launch and expand several owned brands to offer a wider range of options across categories, products and prices, including:
- dealworthy – The new brand is designed to give consumers great value on nearly 400 everyday basics across apparel and accessories, beauty and essentials, electronics and home, starting under $1 with most items under $10.
- up&up – Target relaunched its largest and most expansive essentials brand with new formulations, branding and packaging, plus hundreds of new everyday items in personal care, health, pet care, storage and more to round out the essentials assortment.
- Gigglescape – The new toy brand sparks joy and imagination for kids and parents with an assortment of plush, books, toys, games and more rolling out in 2024 and beyond.
Target owned brands provide a combination of quality, style, performance and value, and drove more than $30 billion in sales in 2023.
"Today...we're making strategic investments that expand on our core strengths, further elevate our guest experience and deepen our connection to both current and new guests. Most importantly, these plans provide fuel for our next era of growth."
— Brian Cornell, Target
"For years, Target has consistently built for the long-term, investing in the assets, capabilities and team that have differentiated our business, enabled us to deliver for guests in any environment and driven strong growth," said Brian Cornell, chair and chief executive officer, Target. "Today, with that same long-term view, we're making strategic investments that expand on our core strengths, further elevate our guest experience and deepen our connection to both current and new guests. Most importantly, these plans provide fuel for our next era of growth."
Target Circle, relaunching April 7, will offer a suite of memberships that include the continuation of a free-to-join membership, retail payment card options, and a new paid membership.
Membership options include:
- Target Circle: Target will continue offering its free-to-join membership with personalized deals, member-exclusive sales throughout the year and additional perks and savings. Based on guest feedback, deals will now be applied automatically at checkout. Shoppers also can earn Target Circle Rewards and take advantage of personalized deals through Target Circle Bonuses.
- Target Circle Card: To save even more, consumers can apply for a Target Circle Card (previously known as Target RedCard) for an extra 5% off every day, as well as extra time to return items and free two-day shipping on hundreds of thousands of items on Target.com.
- Target Circle 360: Consumers also can sign up for Target Circle 360, a new paid membership that includes unlimited free same-day delivery for orders of more than $35 in as little as an hour with no delivery fees or markups, free two-day shipping3, access to preferred shoppers who can personalize their experience and access to Shipt Marketplace, which offers same-day delivery from more than 100 retailers nationwide.
Target officials said they will also continue investing in its stores-as-hubs model during the next decade with plans to build more than 300 new stores. The retailer is also investing to enhance the vast majority of its nearly 2,000 stores, with projects ranging from full remodels to adding Ulta Beauty locations, upgrading fixtures, supporting same-day services and more.
Additionally, Target will continue enhancing supply chain operations for increased efficiency, speed and capacity, including next-day delivery through sortation centers, and using artificial intelligence to drive improved inventory efficiency and forecasting across its network.
