Target's private label share exceeds Walmart and Amazon, with record growth

The proportion of private brands has surpassed Walmart and Amazon

Target said that as consumers went out to party, events such as Mother's Day boosted sales, driving total revenue in the first quarter up 23.4% year-on-year . Among them, the private label blitz also achieved significant growth in the quarter. It is reported that Target's private label sales increased by 36%, the strongest ever recorded by the retailer.

As its first-quarter results showed, Target’s private-label launches have proven to be an effective tool for boosting sales. A recent report from Profitero showed that Target had the highest percentage of private-label brands in search results, surpassing Walmart and Amazon.

Target's activewear brand All in Motion generated $1 billion in revenue in its first year. The retailer also launched its first handmade brand in more than a decade, dubbed Mondo Llama.

However, as shoppers stocked up on merchandise and groceries in stores, Target's sales of essentials and food and beverages were both low in the mid-single digits compared to the first quarter of 2020. Still, Target gained $1 billion in market share in the first quarter of 2021, compared to $1 billion it earned in the same period last year.

Target's digital sales grow 50%

Despite the higher numbers compared to the prior fiscal year, Target expects accessories sales to grow in the mid- to high-single digits in the second quarter and in the positive single digits in the third and fourth quarters.

Meanwhile, digital sales growth slowed to 50% after rising 141% last year, while same-day service grew more than 90%. The company said in April it was testing a faster way to complete deliveries using a new sorting center in Minneapolis.

Target's vice president said stores remain key to Target's online capabilities, reaffirming management's strategic decision to position them at the center of its online flywheel, while delivery from pickup and curbside only benefited, allowing the online business to continue to be robust as consumers take advantage of these flexible options to achieve sales growth.

In the first quarter, more than 95% of Target's total sales were generated through store assets and inventory. The retailer's emphasis on stores has prompted it to invest $4 billion annually to open more locations, increase distribution capabilities and update existing stores over the next few years.

Target

First quarter report

Private Label