Target Moves Forward With 'Owned Brand' Growth Plans

The private label product selection at Target has grown exponentially over the past few years, and the retailer this year plans to expand that mix with the debut of new brands and the expansion of existing assortments, executives with the retailer said during a recent investor conference call.

In fact, this on-going effort to boost its selection of Target-exclusive brands has led the retailer to evolve how it speaks of its own brand roster of products.  

“We talk about owned brands rather than private label because these are brands we have invested in for years,” said Christina Hennington, Target’s executive vice president and chief growth officer. “We build them, design them, create the packaging, the marketing materials, and they're hugely important to our strategy. We never think about it as a trade-down, we think about it as a trade-in. It creates more options for people to use and engage with our portfolio because it tends to be the same great quality at incredible price points.”

The change in nomenclature Target uses to describe its private brand assortment provides an interesting talking point for suppliers and retailers in the private label marketplace. During the past two years, economic challenges have driven a larger number of consumers to seek store brand products as part of their effort to make ends meet.

Retailers of all shapes and sizes are now seizing the opportunity to continue expanding private brand assortments, with many now saying they are working to raise the profile of their assortments of unique products and market them with greater frequency to consumers.

At Target, the growth of owned brand products has been seen over the past four years. Since 2019, it has launched 17 store brands with Good & Gather and All in Motion each accounting for more than $1 billion in sales. 

“Our owned brands have long been a source of pride and differentiation for Target, offering great style and quality all at incredible value,” Hennington said. “It’s no surprise that our owned brands have continued to outpace total enterprise growth and why we have plans to launch new or extend assortments in more than 10 owned brands this year.”

In 2023, she said Target is “leaning in” to market share opportunities. This includes the debut of new owned brands in the home category later this year, and new collections within apparel.  

“We believe our commitment to newness is a key reason why we continue to generate traffic growth and why we drove broad unit share gains last year,” Hennington said. “Our focus on balance can be found within each category as well, where we continue to offer both industry-leading national brands and high-quality, affordable owned brands that are unmatched by our competitors.”