Target to Launch an Activewear Brand
Target is ready to launch yet another new brand — one that executives hope will help it compete with the likes of Athleta and lululemon. All in Motion, an activewear brand developed by Target's in-house designers, will replace C9 by Champion, a licensed brand from Hanesbrands that Target has carried exclusively for more than 15 years. The new brand will roll out on Target.com on Jan. 17 and be in stores a week later. Target expects the new brand will help it gain market share in the competitive activewear category, with All in Motion expected to hit $1 billion in sales in its first year.
Total Retail's Take: Target has identified a potential market share opportunity in the fast-growing activewear category, and is taking steps to capture it with the launch of All in Motion. An investment in apparel, including phasing out underperforming brands while introducing new ones, has been integral to Target's turnaround in recent years. Strong private-label brands are key to the success of department store chains such as Target, as they create loyal customer followings and offer higher margins than other branded merchandise. For now Target seems to be pushing all the right buttons; we'll see if the All in Motion launch continues that trend.