Target launches low-cost brand with prices starting under $1
Prices start at under $1 for some items
Target is luring in price-conscious customers by launching its cheapest brand to date.
It's called "dealworthy," and it comes as households continue to feel constrained by the high cost of goods.
The Minneapolis-based company said Thursday that the new brand will encompass products in a variety of categories from apparel, accessories and beauty to electronics and home items. Most of them will cost under $10, but some will start at less than $1, Target said.
For electronics in particular, some items will be 50% cheaper than other Target brands.
HOW TARGET, BUD LIGHT TURNED OFF LOYAL CUSTOMERS IN 2023
Target Executive Vice President Rick Gomez said the brand "will not only appeal to our current guests but position us to attract even more new shoppers to Target."
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| TGT | TARGET CORP. | 121.76 | -34.24 | -21.95% |
The products will roll out in stores and online this month. New products such as power cords, undergarments, laundry detergent and dish soap will be introduced through early 2025.
Target launches its new brand, dealworthy. Most of the products will be priced at under $10. (Target)
The company also said if customers aren't satisfied with the products, they have up to a year to exchange or return the item for a refund with the receipt.
MORE AMERICANS ARE GETTING A SECOND JOB TO OFFSET STING OF HIGH INFLATION
Target Chief Growth Officer Christina Hennington said on an earnings call late last year that inflation in certain categories has been "meaningful" over the last several years and that it's "going to take a while to overcome."
While inflation is cooling from the highs seen in mid-2022, recent data shows that families are still feeling the pressure.
Target launches its new brand, dealworthy. The company noted that phone cases will be priced 50% lower than any other brand sold at Target. (Target)
In January, for instance, the typical U.S. household needed to pay $213 more for the same goods and services compared with a year ago as high inflation persisted, according to new calculations from Moody's Analytics chief economist Mark Zandi.
GET FOX BUSINESS ON THE GO BY CLICKING HERE
Americans are paying on average $605 more each month compared with the same time two years ago and $1,019 more compared with three years ago, before the inflation crisis began.
FOX Business' Megan Henney contributed to this report.