Target Introduces New Brand, dealworthy, Featuring Low Prices on Everyday Basics

Rhea-AI Summary

Target Corporation (TGT) introduces new low-price owned brand 'dealworthy' with nearly 400 everyday basics starting at less than $1 and most under $10. The brand is backed by Target's one-year return policy, offering consumers incredible value without compromising quality. dealworthy spans apparel & accessories, essentials & beauty, electronics, and home items, with prices significantly lower than other brands. Consumers can shop dealworthy in stores, online, or through Target's fast and free services like Drive Up and Order Pickup.

Insights

Market Research Analyst

The introduction of dealworthy by Target Corporation represents a strategic move to capture a larger share of the cost-conscious consumer segment. This initiative is a direct response to the growing demand for value products amidst inflationary pressures and heightened price sensitivity among shoppers. By positioning its products starting at less than $1, Target is likely to attract price-sensitive customers, potentially increasing foot traffic and website visits.

From a market perspective, dealworthy's aggressive pricing strategy could disrupt the current market dynamics, compelling competitors to reevaluate their pricing structures. The long-term implications might include a price war, which can benefit consumers but potentially reduce profit margins industry-wide. The commitment to a one-year return policy could also bolster consumer trust and loyalty, which is crucial for retaining customers in a competitive retail landscape.

Financial Analyst

Target's announcement of its new owned brand dealworthy could have a positive impact on its financial performance. The $30 billion in annual sales from Target's owned brands indicates that these products are a significant revenue driver for the company. The expansion of this segment with dealworthy items, especially with most under $10, is likely to contribute to an increase in overall sales volume.

However, investors should monitor the effect of lower-priced items on Target's profit margins. While volume may increase, the lower price point could potentially dilute earnings unless compensated by a significant uptick in unit sales or cost efficiencies. Additionally, the introduction of dealworthy could cannibalize sales of higher-margin items, a factor that should be considered when evaluating the financial impact of this new brand.

Consumer Behavior Expert

Target's launch of dealworthy reflects a deep understanding of consumer behavior, particularly the emphasis on value without compromising on quality. The psychological appeal of obtaining products at such low prices can drive impulsive buying behaviors, which can be beneficial for Target's sales. Furthermore, the one-year return policy on these items is likely to enhance consumer confidence and satisfaction, leading to repeat purchases and positive word-of-mouth.

It's important to note how this move might alter consumer perceptions of Target as a brand. While the appeal to more budget-conscious shoppers could expand Target's customer base, it is essential that Target maintains its brand image and does not become primarily associated with low-cost items, which could deter some of its current customer segments.

New owned brand dealworthy features nearly 400 everyday basics, starting at less than $1 and with most items under $10

dealworthy is backed by Target's owned brand one-year return policy  

MINNEAPOLIS, Feb. 15, 2024 /PRNewswire/ -- Target Corporation (NYSE: TGT) today introduced its new low-price owned brand, dealworthy, designed to give consumers incredible value on nearly 400 everyday basics. With dealworthy, Target is offering more options at lower prices, starting at less than $1, while strengthening its portfolio of owned brands. dealworthy also is backed by Target's owned brand promise: If a consumer is not satisfied with any Target owned brand item, they can return it within one year with a receipt for an exchange or a refund.

"With the introduction of our newest owned brand, dealworthy, consumers can shop hundreds of everyday basics at incredibly low prices, without sacrificing quality for the price," said Rick Gomez, executive vice president and chief food, essentials and beauty officer, Target. "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."

Meet dealworthy
The dealworthy assortment spans apparel & accessories, essentials & beauty, electronics and home items. Starting at less than $1 and with most under $10, the prices on dealworthy items are among the lowest guests will find across Target's assortment. In electronics, some items, like phone cases, will be priced 50% lower than any other brands sold at Target. The first dealworthy products will arrive in February in stores and on Target.com, and new products will continue to be introduced throughout 2024 and early 2025, including power cords, undergarments, socks, laundry detergent, dish soap and more.

Target brands
Target's industry-leading portfolio of owned brands contributes to more than $30 billion in sales annually. These brands and products reflect what guests value most when shopping at Target, including quality, low prices and convenience. Target's owned brands span four categories, including apparel & accessories, home, food & beverage and beauty & essentials. The retailer is always looking for new ways to meet guests' needs and does that by investing in its brands, launching new ones and expanding others — including the recent expansion of up&up. 

Easy ways to shop
Consumers can shop dealworthy in stores and on Target.com, or with the retailer's fast and free services, including Drive Up and Order Pickup, in as soon as two hours with no minimum purchase and no membership fee required, or delivered to their doorstep through Target's same-day delivery with Shipt in as soon as an hour.

About Target
Minneapolis-based Target Corporation (NYSE: TGT) serves guests at nearly 2,000 stores and at Target.com, with the purpose of helping all families discover the joy of everyday life. Since 1946, Target has given 5% of its profit to communities, which today equals millions of dollars a week. Additional company information can be found by visiting the corporate website and press center.

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SOURCE Target Corporation

FAQ

What is the name of Target Corporation's new low-price owned brand?

Target Corporation's new low-price owned brand is called 'dealworthy.'

How many everyday basics does dealworthy offer?

dealworthy offers nearly 400 everyday basics.

What is the starting price range for items in dealworthy?

Items in dealworthy start at less than $1, with most items priced under $10.

What is the return policy for dealworthy items?

dealworthy is backed by Target's owned brand promise, allowing consumers to return any item within one year with a receipt for an exchange or refund.

In which categories does the dealworthy assortment span?

The dealworthy assortment spans apparel & accessories, essentials & beauty, electronics, and home items.

How can consumers shop dealworthy products?

Consumers can shop dealworthy in stores, on Target.com, or through Target's fast and free services like Drive Up and Order Pickup.