Target pursues fast fashion with new private brands
Target has been struggling to keep up with fast fashion competitors. In response it is dumping Mossimo and Merona and introducing new private label brands this fall across multiple categories. Target will introduce its brand A New Day for women. The brand will feature monthly product deliveries instead of quarterly ones. It is targeting the same consumer who shops at Zara as well as J.Crew. For men, Target will first roll out Goodfellow & Co. According to chief marketing officer Rick Gomez, A New Day and Goodfellow are the first brands in a series of future roll outs designed to meet the needs of the new Target customer. Gomez said, "We're going to have a portfolio of brands that each stand for a specific point of view and a particular aesthetic." The introduction of more private label brands is part of a $7-billion-dollar, three-year revitalization plan for the retailer. Target will be spending money on updating stores and improving supply chain efficiency to better compete with Amazon and Walmart. Target has seen a lot of success with its children's label Cat & Jack. Since its introduction last year, the private label children's brand has shown $2 billion in sales. To make room for Cat & Jack, Target stopped selling Circo and Cherokee. In addition to new men's and women's brands, Target is also introducing Project 62. Named after the year Target was founded, Project 62 will offer modern home decor focusing on the same consumer who would shop at West Elm and Design Within Reach. Target's chief merchandising officer Mark Tritton said, "The guest is changing" and there needs to be a more specific focus on their needs. He said the consumer is not going to malls and they are not tied to specific brands anymore. Tritton came to target in 2016 from Nordstrom where he led the company's private label business. Target will continue an aggressive plan to roll out new brands over the next 18 months. It will be supported by print, mailer, tv and digital ads in a campaign called "more in store." A New Day product will begin arriving in Target stores on August 27th.