Target's Ambitious Growth Beyond Borders: Reportedly Broadens Sales Horizons Beyond Own Stores

Zinger Key Points
  • Target eyes expanding sales of the in-house Cat & Jack children’s brand at department-store chain Hudson’s Bay Co. in Canada.

Target Corp TGT is reportedly extending its reach beyond its own stores by expanding sales of its private-label brands at other retailers.

Target is expanding of its Cat & Jack children's brand at Hudson's Bay Co. in Canada, offering swimwear, outerwear, and shoes alongside apparel, according to a report from Bloomberg.

The move comes after positive feedback, with the merchandise driving increased purchases, according to the report.

The company is considering opportunities to sell its products to retailers in Europe and the Americas. The report further quotes Chief Growth Officer Christina Hennington who emphasized that while expanding globally, Target’s priority remains its U.S. customers.

Target aims to rebound from declining sales by broadening its private-label offerings, capitalizing on their higher margins.

The retailer faces challenges from reduced consumer spending and controversies surrounding certain products.

Also Read: Target Introduces TruScan Tech To Combat Self-Checkout Theft: Report

The retailer’s comparable sales declined 4.4% in the fourth quarter, reflecting comparable store sales declines of 5.4% and comparable digital sales decline of 0.7%.

Store brands like Cat & Jack contribute significantly to Target’s revenue, with over $3 billion in annual sales. The report further noted the company plans to expand its store brands and introduce new lines while emphasizing exclusive partnerships to drive sales.

Target is banking on store expansion, a revamped loyalty program, and exclusive offerings to boost performance. 

Target's strategy mirrors competitors like Walmart Inc WMT and Kroger Co KR, focusing on higher-margin private-label products.

The recent deal with Hudson's Bay marks a return to Canada after Target’s previous exit from the market.

Target stock has gained nearly 1% in the last 12 months. Investors can gain exposure to the stock via VanEck Retail ETF RTH and Consumer Staples Select Sector SPDR Fund XLP.

Price Action: TGT shares traded higher by 0.07% at $158.15 premarket Monday.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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