Target edges out Walmart with exclusive brand
Retailers have been feeling the strain since 2020, when the combination of a pandemic and economic slowdown forced consumers out of stores.
No sooner did that situation begin to resolve when inflation started soaring. And the lingering impact of inflation has forced consumers to start spending their money differently.
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There's a long-running joke that it's impossible to walk into Target without spending at least $100. But that's not as doable today, what with grocery prices being sky-high and just about every other essential bill costing more than it used to.
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Because inflation has been so persistent, many consumers have cut back on non-essential purchases. So the days of walking into Target for milk and underwear and leaving with a shopping cart full of purchases may be a thing of the past - at least until inflation manages to cool down.
Image source: Santiago/Getty Images
Target has taken a beating in recent years
Back when it seemed like the world was blowing up in 2020, big-box retailers like Target were actually poised to shine. Not only did Target have the distinction of being an essential retailer, but it had long done a respectable job of mastering the shipping game, offering customers the convenience of not having to leave their homes.
But Target, like many other retailers, has been feeling the strain of inflation in recent years. And during its most recent earnings call, it warned that it expects profits to drop in the upcoming quarter due to general economic uncertainty and the impact of tariffs.
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Target has also experienced its share of distress these past few years due to unfavorable consumer sentiment.
In 2023, consumers boycotted Target over its pride collection. More recently, Target made the decision to scale back its DEI program. That, in turn, spurred another wave of boycotts.
Target was also part of the economic blackout that occurred in late February, which also hit giants like Walmart and Amazon.
Target makes a key move to win back customers
Target needs to step up its game to recapture some goodwill and get more shoppers in the door.
The one thing Target has long had going for it, though, is its array of appealing inventory.
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Whereas many consumers regard Walmart as a place to go for essentials, Target has the reputation of being more of a shopping destination. And at a time when consumers are being more choosy, Target needs to focus on bringing inventory with broad appeal into its stores.
As part of a plan to expand its lineup, Target is introducing an exclusive collection of products with home brand Parachute. Dubbed Parachute for Target, the collection will be available both online and in stores and feature more than 200 bath and bedding items.
Parachute for Target's price range will be $12 to $199, with most items being priced under $99. This collection expands on the store's growing line of bedding products.
"Target's famous for making great style accessible to everyone, so the opportunity to bring an amazing brand like Parachute to our guests is a dream come true," said Jill Sando, Target's executive vice president and chief merchandising officer of apparel and accessories, home and hardlines. "Together, we're focused on delivering on-trend newness, and you can't get more on trend than Parachute's luxurious bedding - at only-at-Target prices.
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Known for its ultra-soft bedding, Parachute is likely to appeal to Target customers who want to invest a little more in a comfortable night's sleep. The hope is that this new collection will give shoppers another reason to open their wallets - while letting Target prove it still deserves its reputation as a shopping destination.
Maurie Backman owns shares of Target.
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This story was originally published April 25, 2025 at 7:03 PM