Target Corp. announced it has launched a new private label product line for price-conscious consumers called dealworthy. The assortment of 400 everyday basics will include apparel and accessories, essentials and beauty, as well as electronics and home items.
Items will start at less than $1 and with most under $10, the prices are designed to be among the lowest customers will find across Target stores. For example, Target shared that some of its electronics items like phone cases will be priced 50 percent lower than any other brand sold at Target. Some dealworthy products are currently in stores and on Target.com, and new products will continue to be introduced throughout 2024 and early 2025.
Earlier this month Target also announced it has revamped its 15-year-old everyday essentials brand Up&Up with new branding, product reformulations and additions to the assortment.
Total Retail’s Take: Target is leaning further into private-label goods in an effort to acquire new customers to the business as well as increase the wallet share of existing customers. This move isn’t particularly surprising considering Target’s owned brands are a key revenue generator for the retailer, with more than 48 private-label brands contributing more than $30 billion in sales annually.
In addition, the launch of the dealworthy brand and its affordable pricing model comes at a time when cash-strapped consumers are shifting their shopping habits and hunting for bargains in the face of inflation. Many consumers, including high-income households, are buying more store-label brands as budgets stretch in the face of higher interest rates and other uncertain economic conditions.
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