April 6th 2021
Target's new Private Label brand is aiming to make everyday your Favorite Day, by bringing you new goodies like premium ice cream and candy.
Their existing Good and Gather brand is instead more focused on healthy options... and which oh by the way generated a whopping $2 billion in sales for Target in 2020.
Both brands are private labels, meaning they're owned and exclusively sold by Target... like Kirklands from Costco or literally everything at Trader Joes.
BMB source
Mega corporations use their online sales data to know exactly what products customers want. They then use their brick-and-mortar stores to give customers direct access.
Private label brands are way more profitable for the mega corporations. Maybe that's why Target has 40 of them with 30 of those launching in just the last 5 years.
Target now has 10 billion-dollar brands, with four of those crossing the $2 billion per year mark.
Amazon competes with Target and has 111 private label brands, like AmazonBasics, which offers 4,152 products on its own.
Another competitor, Walmart, just launched a new private label, Free Assembly, which is taking a shot at 'forward fashion'. Could it be the next Prada? 😅
More importantly though... Target can now deliver their new Favorite Day ice cream directly to your door via Shipt. No need to leave your house ever again!
Target's private labels are forcing well-known brands such as Apple, Disney, and Levi's to come to the table and strengthen relationships. Ulta Beauty will begin to open inside Targets this year.
Target had a massive 2020, growing market share by $9 billion and revenue by $15 billion. Consumer shopping will most likely look different in 2021 though when compared to 2020, which was driven by the pandemic.
Technicals show 14 BUY indicators and 2 SELL indicators – including momentum, which could be signaling an overbought environment. Zacks gives it a 3-hold ranking.
Zain Akbari, an equity analyst for Morningstar, has given it a fair value estimate of $127. He advises that you think about waiting for a more attractive entry price.
By: Brian Kilpatrick
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