Dive Brief:
- Target announced Thursday the launch of a low price-focused private brand called Dealworthy.
- The brand includes 400 everyday basics such as paper towels, paper plates, body wash, charging cables and cotton balls.
- With the new private label offering, Target said it is able to expand its assortment of items starting at less than $1.
Dive Insight:
Target’s new private brand comes at a time when retailers are investing in store brands as a way to appeal to budget-conscious consumers.
"We know that value is top of mind for consumers, and dealworthy, backed by our owned brand promise, will not only appeal to our current guests but position us to attract even more new shoppers to Target,” Rick Gomez, executive vice president and chief food, essentials and beauty officer at Target, said in the announcement.
Dealworthy allows Target consumers to get everyday essentials “without sacrificing quality for the price,” Gomez said.
The new store brand’s assortment includes apparel, accessories, beauty, electronics and home items. Some products start at less than $1 and most are less than $10, according to the announcement. In the electronics area, some items, like phone cases, will cost half the price of other brands sold at Target, the retailer said.
Target said some of the new brand’s products arrived at its stores and online this month and that more items such as power cords, undergarments, socks and dish soap will get rolled out throughout this year and early 2025.
Dealworthy marks the latest private label effort from Target. Earlier this week, the retailer relaunched its Up&Up home essentials brand, adding hundreds of products and reformulating 40% of the assortment to meet higher quality standards. Target’s private brands portfolio totals more than $30 billion in annual sales.
Target has recently focused on low prices for its store brand items. In September, Target launched its first kitchen brand, Figmint — a 250-item line with prices starting at $3. At the end of the summer, the retailer added more than 20 seasonal private label food items starting at $1.99 under its Good & Gather and Favorite Day brands.
Even as inflation has cooled in recent months, consumers continue to remain focused on prices. Fifty-four percent of surveyed shoppers said they plan to purchase much or somewhat more private brands in the future, compared to 26% who said the same for name brands, according to a report last fall from FMI – The Food Industry Association.
