Tarjay schemes on Lulu
Bitter as Lululemons... Barely a year after launching, Target's athleisure line "All In Motion" has hit $1B in annual sales. The private label sells things like sports bras, leggings, and yoga mats (pandemic trifecta). And it's quickly catching up to 23-year-old Lululemon, which made $2.3B in sales from January to September 2020.
Cutsey generic name (check)... Private labels like All In Motion, Good & Gather (food), and Cat & Jack (kid's clothes), are profit puppies for Target. They're not Target-branded, but they're Target-owned. Tarjay has launched more than 30 of these brands — and 10 of them are doing more than $1B/year in sales. Private labels are cheaper to supply than external brands, so the profit margin is usually higher. Especially for private label clothing:
Big retailers are becoming mini malls... And winning a spot on their shelves is becoming more crucial. Retail-pocalypse drove mall staples like J.C. Penney and Neiman Marcus to bankruptcy last year, while the pandemic accelerated retail closures. That's partly why 25% of US malls are expected to close by 2025. Meanwhile, Target and Walmart are transforming into one-stop-shops for all your needs, from groceries, to home decor, and fashion. That's why Ulta, Levi's, and Disney, have moved into Target – and why Sephora is moving into Kohl's.