The past year or so has provided a challenging landscape for many retailers operating in the U.S., but perhaps nobody has had a harder go of it than Target (TGT) .
Target usually rings in Pride Month by celebrating its LGBTQ+ members and launches a limited-edition collection of rainbow and inclusive apparel. Past lines have also included chest binders and other underwear designed for transgender consumers.
But outcry of a magnitude similar to the Bud Light controversy followed, and Target removed Pride-themed greeting cards, apparel, and accessories or relocated to a less-prominent display in stores. Soon, it had the American public divided over whether it was too progressive for introducing the line in the first place, or whether it had caved to pressure and endangered the LGBTQ+ community further.
Target then spent the latter half of 2023 grappling with inventory shrink, the retail industry's term for loss of product, as well as some violent incidents relating to its decision to wade into an issue steeped in emotion and controversy.
"After the launch of the assortment this year, members of our team began experiencing threats and aggressive actions that affected their sense of safety and well-being while at work," CEO Brian Cornell said following the pride merchandise incident.
"In addition to these more recent challenges, our team continues to face an unacceptable amount of retail theft and organized retail crime. ... Shrink in the second quarter remains consistent with our expectations, but well above the sustainable level where we expect to operate over time," Cornell added.
Target changes its tune in 2024
Eager to put many of its 2023 troubles behind it, Target has been kicking off 2024 on a much lighter note, introducing more family-friendly deals and products that promise to be less divisive.
In February, it announced it would be launching a new in-house brand (or -owned-brand, as Target refers to them) with shoppers' budgets in mind. Its Dealworthy would feature hundreds of new household products, such as toiletries, apparel, and tech accessories, that would range in price from $1-$10. Target said most of the items may be up to 50% cheaper than most other brands currently sold at Target.
During its Q4 earnings call, Target announced it would roll out a paid membership program to compete with the similar services offered at peers like Amazon (AMZN) and Walmart (WMT) for $99 per year.
And most recently, Target announced it would roll out yet another new brand, Gigglescape, an affordable toy line with children of all ages in mind.
Gigglescape will launch later in 2024 and feature toys, games, puzzles, and plush stuffed animals. Most books will sell for around $5 per item and most toys will be $10 and below. Currently, all Gigglescape toys are $20 and under.
Its packaging will be mostly plastic free as Target aims to reduce its carbon footprint and provide sustainable packaging.
Target has not provided an exact date for the Gigglescape drop, but it has been quick to roll out some of its other recently launched brands. It recently refreshed its Up&Up brand with a relaunch beginning in February, and Dealworthy will begin stocking in stores and online in early 2024, too. So it's fair to expect Target's promise that Gigglescape is "coming soon," is really around the corner.
