Target own brands play key role in record annual sales
There’s more to come from Target’s own brands in the year ahead. The retailer highlighted its store brands as a key pillar to its huge annual success alongside its annual and fourth-quarter fifinancial results. The company saw an increase in annual sales of $15.3 billion, a 19.8% jump in full-year sales to $92.4 billion, and a whopping 145% increase in digital sales (including delivery and pickup).
In own brands, Christina Hennington, recently named Target's chief growth officer, said the retailer’s private brands represent a third of its sales and four brands have reached $2 billion in sales: Cat & Jack, Up & Up, Threshold and Good & Gather.
In all, Target has more than 30 own brands and Hennington said there will be more to come in the new year, delivering on what shoppers need. She said the strategy, like its hugely successful All in Motion brand, one of 10 brands that earned more than $1 billion in sales, is to listen to shoppers. For All in Motion, the team interviewed 15,000 guests about athleisure apparel, and they were quick to launch, ahead of the athleisure trend booming during the pandemic as work-from-home gear. The tremendous success of Good & Gather also comes from taste tests and talking to shoppers, and with Cat & Jack, the retailer talked with parents and what they need, she said.
Additionally, she said the retailer will look into dedicated partnerships like theLevi’s program and the Ulta beauty shop and just last week's Apple products center.