What Target's expansion of private label Goodfellow and Co means for competitors (2024)

FAQs

How much revenue does Target private brand generate? ›

Sales of Target's more than 45 owned brands generated over $30 billion in 2021, up 18% from 2020.

Having a strong portfolio of private label brands gives shoppers a reason to shop at Target over Walmart or Macy's. "In a world where everything is increasingly commoditized, each… [private brand] helps differentiate Target and build preference for our overall brand," says Target CEO Brian Cornell.

In late May, the retailer quietly announced its plans to spin off its nearly 2-year-old, private-label men's fashion brand, Goodfellow & Co, from a pure apparel line into grooming.

It's been nearly two years since we announced Target-exclusive Goodfellow & Co as our new men's apparel and accessories brand.

Target (15.1%), Whole Foods (14.7%) and Publix (13.6%) follow closely behind the top 10 in private label share (among Grocery, Household, Health & Beauty).

Target corporation makes the majority of their revenue through retail merchandise sales. 98.7% of Target's total revenue came from merchandise sales at the end of 2021. Target has over 1,900 stores in the United States of America, which generates revenue from merchandise sales.

Target's audience values low prices but wants a more comfortable shopping experience. Therefore, Target's value proposition will resonate more towards shoppers that have more spendable income, value shopping experience, and a product's quality, higher than low prices.

Gary Ambrosino, President & CEO of TimeTrade, explains why Target stands out among it's competition, stating that knowledgeable staff and the willingness to support customers is among the reasons Target leads the pack among discount competitors when it comes to store reputation.

Today's consumers choose private label products for quality, consistency, and affordability. Even in economic downturns, private label goods enjoy steady sales thanks to lower price points.

The fan-favorite store chain recently announced that it'll be remodeling its stores so that they are bigger, brighter, include more merchandise and have more sustainability features.

How does Goodfellows work? ›

Tata. The tagline of Goodfellows is “Everything grandkids do” and that's exactly how it works. Senior citizens who subscribe to this platform are paired with graduates in the age group of 18 to 30, who over a course of time form meaningful bonds with them.

The history of Target Corporation first began in 1902 by George Dayton. The company was originally named Goodfellow Dry Goods in June 1902 before being renamed the Dayton's Dry Goods Company in 1903 and later the Dayton Company in 1910.

Goodfellow & Co. has moderately good performance in Sustainable Products according to JUST Capital, which measures how well a company reduces the environmental impact of its products and services by using sustainable materials and renewable energy.

Our mission. We partner with vendors and suppliers to achieve high labor and environmental standards for Target brand and Target imported products. Our mission is to ensure that our vendors utilize factories where workers are valued, the environment is protected and business is conducted in an ethical way.

Due to fewer distribution overheads, lesser number of intermediaries and negligible marketing costs, private labels are able to sell their products up at lower prices than their branded counterpart, thus improving their gross margins.

Ranked by household penetration, the top private label brands include four Walmart brands: Great Value (purchased by 72.7% of US consumers), Equate (51%), Marketside (44.2%), and Freshness Guaranteed (40%), followed by Dollar Tree (32.5%). Aldi, Target, and Amazon lead in fastest growing private label brands.

A private label product is one that a retailer gets produced by a third-party but sells under its own brand name. The retailer controls everything about the product or products. That includes the specs of the product, how it's packaged, and everything else besides.

To gain real competitive advantage, the focus of target marketing must be on developing new-to-the world or new-to-the-market products that provide consumers with totally new perceived benefits.

Target has some unique competitive advantages. A very strong brand and loyal customer. Although much of retail shopping has moved and will continue to move online, there is still a need for local brick and mortar businesses. People that shop at Target generally like the atmosphere and set-up of the store.

What is Target Corp competitive strategy? ›

Delivering affordability to our guests. Differentiating from our competition with our owned brands and a curated assortment of leading national brands. Investing to create an engaging and differentiated shopping experience.

Target's single-minded focus on what customers want and how to get it to them has helped the retailer stand strong against rivals Walmart and Amazon. Omnichannel shopping means different things to different retailers.

A target market can be translated into a profile of the consumer to whom a product is most likely to appeal. The profile considers four main characteristics of that person: demographic, geographic, psychographic, and behavioral.

We'll match the price if you buy a qualifying item at Target then find the identical item for less at Target.com, select online competitors, or in Target's or competitor's local print ad. Price matches may be requested at time of purchase or within 14 days after purchase.

Competitive Rivalry:

Due to the availability of investments, many retail players competing with Target had entered the market and now the competition is neck to neck. There are many international competitors like Walmart, Alibaba, Amazon etc. as well as national players to any specific region.

Also called original equipment manufacturing (OEM), private label branding is a common strategy stores use to expand the diversity of products they offer while maintaining control over pricing and profit margins. Some common private label items include generic paper towels, pharmacy-brand medication and discount shoes.

Private labels offer retailers control over product factors such as pricing, size, package design, production and distribution. Retailers can develop and implement innovative ideas to gain market share over national brands.

Next year, Target expects to do 200 full store remodels and open 30 new stores. Target is making stores bigger — adding about 20,000 square feet more than the chain average. This added space includes an updated backroom that is five times bigger than stores of a similar size.

Target already flirted with international expansion when it entered the Canadian market in 2013. The venture failed because Target opened too many locations in a short period. The company can attract international customers by opening up distribution and delivery channels for people who want to shop online.

What is Target's brand identity? ›

Target's brand position is “design for all.” Although Target never says this directly, it communicates it consistently through its personality, which is cool, fun, trendy and fresh.

According to a press release, the Goodfellows business strategy is a "freemium subscription model," with the first month of the services being free and a minor membership price starting in the second month.

Goodfellows works based on a freemium subscription model. The first month is free. From the second month, the company charges a base subscription fee of Rs 5,000 per month which can be negotiated based on the limited affordability of pensioners.

In short, Goodfellows provides companionship to the senior citizens in a way "similar to what a grandkid would do". Ratan Tata praised the initiative during its launch, saying, "You do not know what it is like to be lonely until you spend time alone wishing for companionship".

See Every Look From Target's Fall 2022 Designer Collab With La Ligne, Sergio Hudson & Kika Vargas.

Target has selected three fashion insider-beloved brands—La Ligne, Kika Vargas, and Sergio Hudson—for their fall 2022 designer collaboration.

Goodfellow was established in London in 1946, since then we've grown our operations across France, Germany, the USA and China. We are a specialist supplier of high-quality metal, alloys, ceramics, polymers and other materials, for research, development and specialist production within science and industry worldwide.

Simon Kenney -

Prior to becoming CEO in 2021, Simon was Sales Director at Goodfellow and was pivotal in the successful acquisition of Goodfellow by Battery Ventures in 2021.

Target's Goodfellow & Co Now Offers Men's Grooming, Making It a One-Stop-Shop for the Modern Man.

Who are the Target audience for eco-friendly products? ›

Research says “to sell green, target the middle class”

The products they studied included eco-friendly batteries, recycled paper, and energy-saving light bulbs.

It aspires to lead positive social impact throughout its supply chain and work with vendors and factories to improve their standards over time. The 2021 Fashion Transparency Index gave Target a score of 42% based on how much the group discloses about its social and environmental policies, practices, and impacts.

The company is one of the largest American-owned private employers in the United States.

Interactive chart of historical net worth (market cap) for Target (TGT) over the last 10 years. How much a company is worth is typically represented by its market capitalization, or the current stock price multiplied by the number of shares outstanding. Target net worth as of February 08, 2023 is $80.44B.

Target Corporation India Private Limited is a Non-govt company, incorporated on 26 Feb, 2004. It's a private unlisted company and is classified as'company limited by shares'. Company's authorized capital stands at Rs 1200.0 lakhs and has 52.19307% paid-up capital which is Rs 626.32 lakhs.

While Walmart's private labels reach the most consumers, others are growing their private labels faster. Aldi, Target TGT -0.8% , and Amazon AMZN -0.6% own the fastest-growing private label brands based on household penetration, according to Numerator, a data and tech company.