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On Thursday, Target announced a new private label brand, Dealworthy, aimed at budget-conscious consumers, whom the retailer has seen pull back on discretionary spending.
Dealworthy offers products starting at less than $1, and most items are priced under $10. The brand includes nearly 400 products across beauty and personal care, electronics, apparel, and home. Per CNN, the retailer is discontinuing its discount private label, Smartly, which it first introduced in 2018 with products in similar categories and priced under $2, like paper plates and hand soap.
“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,” Rick Gomez, Target’s EVP and chief food, essentials, and beauty officer said in a statement.
Products will hit shelves starting February 18 and continue to roll out through early 2025. Previewed products include paper plates, paper towels, toothbrushes, cotton balls, boxer briefs, and power cords. The retailer says some items in electronics are priced as much as 50% below competitors it sells.
The effort is Target’s latest to address dipping sales from cash-strapped consumers, especially as private labels’ dollar share of US CPG continues to grow as shoppers seek low-priced alternatives. It also comes after Target earlier this week announced an expansion and reformulation across its up&up private label. The retailer said the revamp will reformulate 40% of the brand’s products and span 2,000 items “to meet new, even higher quality standards.”