THOUSANDS of items from its Target clothing brand are now being sold in a different store.
The popular retailer recently announced that it has started a wholesale initiative this year with a Canadian Department store.
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Thanks to the partnership, the Hudson’s Bay chain now carries 1,400 items of Cat & Jack children’s apparel from Target’s, the Minnesota-based company announced Monday.
Target brand products are sold in all 85 Hudson’s Bay stores and on the Canadian department store’s website.
Most items cost less than $15.
The partnership between Target and Hudson’s Bay launched in March.
Target’s goal with this big change is “to bring Hudson’s Bay shoppers a broader range of kids’ clothing sizes that are affordable, durable and stylish,” the company said in a press release.
The addition of the Cat & Jack brand to Hudson’s Bay shelves resulted in a 15% increase in basket size at the department store, Target reported.
The retailer has around 50 own brands brands.
Target brand items bring the company $30 billion in annual sales.
Target has struggled to keep up with its rival Wal-Mart.
Target launched its Target Circle 360 paid rewards program in March, following models like Amazon Prime and Walmart+.
About 60 percent of American shoppers say they buy store brands at least somewhat frequently, according to a September 2023 report from CivicScience.
While retailers take notes from each other and shoppers by putting private-label items on their shelves, Target is taking a less conventional path, according to some experts.
The American retailer’s decision to diversify with its own brands, making them available outside its own stores, is not a popular move, said founder and CEO of marketing agency Crew Marketing Partners, Braden Douglas. Fortune.
“It’s not very common because most other retailers don’t want to help another competitor increase revenue,” he said.
What is Target Circle 360?
In April, Target launched its first paid membership program, Target Circle 360.
For $99 per year ($49 if you sign up before May 18), members have access to the following perks:
- Unlimited, free same-day delivery on orders over $35
- Another 30 days to return your items
- Free two-day shipping on 100,000 items
- 5% discount in store and online
- Automatic offers and exclusive benefits for partners
Big retailers are more likely to take bigger risks to attract customers right now due to the current economic climate, Douglas explained.
Target’s move makes sense, he said.
Douglas argued that Target has a strong supply chain that allows it to be flexible and expand.
But he said it is limited by its own geography, as it is practically exclusively in the US.
Target opened in Canada in 2013.
The company purchased the leases to more than 200 Zellers, which is a bankrupt Hudson Bay retail chain.
Target closed all of its Canadian chains less than two years later.
There is hope that working with Hudson Bay now could mean Target has a chance to launch north.
This story originally appeared on The-sun.com read the full story
