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