Target (NYSE:TGT) has announced its plans to introduce a new private-label brand that will offer everyday essentials at prices starting at less than a dollar. This move comes as the retailer aims to cater to value-conscious customers who are increasingly turning to cheaper private-label brands due to the strain on household budgets caused by rising living costs.
The new private-label brand, named dealworthy, will include products such as apparel, cosmetics, and electronic items, with prices starting from less than $1 and most items priced under $10. These products will be available in Target stores and on Target.com starting this month.
Rick Gomez, Target’s executive vice president, stated, “We know that value is top of mind for consumers and dealworthy … will not only appeal to our current guests but position us to attract even more new shoppers to Target.”
This announcement comes following a Labor Department report showing a higher-than-expected increase in U.S. consumer prices in January, particularly driven by a surge in the cost of rental housing.
Target’s move aligns with similar strategies from rival retailers such as Walmart and ecommerce giant Amazon.com, which also offer low-price brands targeting customers seeking bargains on food and household items.
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