Target Corp. has relaunched its store brand of basic household products, as the retailer adjusts to changing consumer habits in the recession.
The Minneapolis-based retail giant said Thursday that it’s rebranded its core commodities line — a product category that includes everyday items such as baby wipes, sunscreen, dryer sheets and plastic containers — under the name “up & up.” The relaunch includes new packaging that replaces the traditional bullseye logo with colorful arrows and the new name.
Target (NYSE: TGT) has been phasing in “up & up” products into its stores since March. By the end of September, Target will be selling more than 800 “up & up” products in its stores. Target claims the brand is equal in quality to national brands — it hired a third-party testing firm to back up its claims — but at a lower price, offering a savings of 30 percent on average.
“Our guests are savvy and know they don’t have to spend a lot to get high-quality products,” Mark Schindele, Target’s senior vice president of merchandising, said in a news release.
The rebranding goes along with other Target efforts to stay competitive in the recession. The retailer long capitalized on its lines of stylish, affordable housewares and clothing, but that approach hasn’t done as well in the downturn — shoppers are more reluctant to spend on such discretionary items and are using their cash on foods and necessities.
Store brands are also on the upswing — they’re generally more profitable than name-brands for the retailer, and market researchers say that consumers are increasingly buying in-house brands to save money.
Earlier this year, Target rival Wal-Mart Stores Inc. relaunched its own private brand, called Great Value.
Target has also been working to boost sales of food, both through a "mini-grocery" rollout and increased emphasis on its in-store Archer Farms line.
