Target Launches New Private Label to Compete with Discounters, Ecommerce Giants

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Target Launches New Private Label to Compete with Discounters, Ecommerce Giants

10/08/2018
Target Launches New Private Label to Compete with Discounters, Ecommerce Giants

Target is launching a value-tier line of everyday items to help compete against deeply discounted products, with most of the new offerings costing less than $2 each.

The new private label, Smartly, will arrive in Target stores and online Oct. 14 (for delivery through Target Restock or click-and-collect through Order Pickup and Drive Up) and comprise more than 70 SKUs, from all-purpose cleaner and body lotion to paper plates and razor blades. Additional offerings will roll out through early 2019. Prices range from 59 cents to $11.99.

"Where we see white space and an opportunity to bring Target’s guests something differentiated, we’ll go for it," says Mark Tritton, EVP and chief merchandising officer, Target. "The introduction of Smartly to our owned brand portfolio is another example of how we are listening to consumers and bringing them differentiated solutions to make their lives easier. Smartly is affordable, looks great and, most importantly, gets the job done."

Target developed the line after discovering guests sought lower-priced options unlike anything Target has offered before in the essentials and personal care categories. According to the Minneapolis-based mass-merchandise retailer, Smartly products cost about 70 percent less than similar products from national brands.

"From there the product design and development team worked to create a line that offers affordable household necessities that include attributes we know consumers are looking for," Target said. "They even went a step further and worked with master perfumers to develop fragrances like Blossom, Citrus Grove and Rain Shower, to ensure that Target guests can be proud to use and display Smartly products in their homes."

Online, the offerings can help the retailer better compete against Amazon and Walmart, while in-store, it can help keep hard-discount chains, such as Aldi, at bay. Additionally, Target appears to be using the line to better compete against such club chains as Costco and Sam's Club: It positions the products as offering "the affordability of bulk shopping without buying in bulk" sizes. Products are sold as single items and offered in small multipacks – such as a four-pack of toilet paper for 99 cents – which is particularly useful for not only value-conscious guests, but also those living in small spaces with storage limitations.

Minneapolis-based Target Corp. operates 1,800 stores and its ecommerce site, Target.com. The company is No. 13 on Progressive Grocer’s Super 50 list of the top grocers in the United States.