New York City – As the issue of high inflation continues to burden consumers, Target is introducing a new low-cost, in-house brand called dealworthy. The company aims to offer budget-friendly products, with most items priced under $10. Target plans to release approximately 400 dealworthy items, including clothing, essentials, beauty products, electronics, and home goods. The retailer also promises that certain electronics-related items, such as phone cases, will be priced significantly lower than other brands sold at Target.
The first wave of dealworthy products has already hit the shelves at Target stores and on the company’s website. Additional products are expected to be introduced throughout 2024 and early 2025, including power cords, underwear, socks, laundry detergent, and dish soap. These new offerings are part of Target’s strategy to attract both current and new shoppers, as the company’s executive vice president and chief food, essentials, and beauty officer, Rick Gomez, explained.
In addition to the dealworthy launch, other retailers have also recognized the consumer demand for lower-cost in-house brands. For example, Hanes recently unveiled “M,” a women’s shapewear line priced as low as $5.50, in comparison to Maidenform’s prices of $40 to $55. Kroger’s Smart Way brand, introduced in 2022, has become the fastest-growing private consumer label on the market.
The introduction of dealworthy and other low-cost private labels comes as policymakers grapple with economic pressures from inflation. Recent data from the Bureau of Labor Statistics revealed inflation rates higher than expected, raising concerns about prolonged high interest rates. Businesses, facing increased labor costs, have responded by raising prices, contributing to the ongoing inflationary pressures in the economy.
The unveiling of dealworthy is Target’s response to the growing struggle with high inflation, offering consumers a budget-friendly alternative for everyday products. As the issue of inflation continues to impact the economy, the introduction of lower-cost in-house brands reflects a larger trend in the retail industry, as companies strive to meet consumer demand for affordable options.