Dive Brief:
- A little over a year after Target launched All in Motion to compete with Lululemon and other athletic powerhouses, the activewear label achieved the company's goal of generating $1 billion in its first year.
- All in Motion, a brand that touts "inclusivity, quality and sustainability," is Target's 10th billion-dollar private label, according to a company press release on Monday.
- The activewear and sporting goods brand was launched last year on Target's website on Jan. 17 and in stores nationwide on Jan. 24, according to its initial announcement.
Dive Insight:
Target is well known for launching various private labels to improve its profit margins and drive sales. And the recent success from "All in Motion" may prove the effectiveness of Target's strategy.
When Target first released the brand, the retailer seemingly took aim at pricier players in the market, such as Lululemon. "Wellness may be everywhere, but a pair of quality leggings at affordable prices? Not so much," Target said in last year's release.
If anything, the pandemic has only accelerated Target's growth. Heading into the holiday season, Target reported a third-quarter comparable sales growth of 20.7%, thanks to increased store traffic (up 4.5%) and ticket size (up 15.6%).
With consumers largely avoiding formal gatherings and continuing to work from home, the sales of athleisure and loungewear rose over the past year. The NPD Group forecast that comfortable clothing such as sweatpants, active bottoms, and socks would comprise 31% of total U.S. apparel spending over the holiday, compared to 26% last year.
"All in Motion's" emphasis on inclusivity and sustainability also provides an opportunity for Target to tap into a market where some retailers may be lacking. A survey conducted last year indicates that the pandemic has made consumers more environmentally conscious, according to global management and consulting firm Kearney.
This isn't the first time Target has launched products to compete in growing markets. Last year, the retailer released Open Story — a luggage line aimed at popular players like Away, and priced 25% to 30% lower than other brands, according to the company.
"Our owned brands are truly a differentiator for Target," Jill Sando, Target's executive vice president and chief merchandising officer of style and owned brands, said in the release. "[I]n its first year, All in Motion stood out in the marketplace, providing guests incredible activewear and sporting goods for whatever their daily lives bring — at an only-at-Target value."
