Seeking Growth, Target Is Now Wholesaling Its Private Label Lines in Canada

Target is taking its private-label brands to other retailers.

The Minneapolis-based retailer brought 1,400 Cat & Jack kids apparel items to Hudson’s Bay stores and thebay.com in March, and is looking to wholesale more of its owned brands to other retailers. Hudson’s Bay has the exclusive on the brand in Canada.

Cat & Jack’s expansion to Hudson’s Bay was the first time Target has sold an owned brand to another retailer. Target said it plans to continue its expansion with Hudson’s Bay and explore more opportunities in new markets with other retail partners to expand its directly owned brands in the Americas and Europe.

The early response from Hudson’s Bay customers has been so positive that Target is already expanding the brand there to include swim, outerwear and shoes in 2025, the company said. Since the Cat & Jack collection launched at Hudson’s Bay, basket size for kids’ apparel has gone up 15 percent. Most of the products retail for under 20 Canadian dollars.

The goal is to bring Hudson’s Bay shoppers a broader range of kids’ clothing sizes that are affordable, durable and stylish. Target’s research showed that many Canadian shoppers already know and love Cat & Jack, a highly popular kids’ apparel brand in the U.S., for its design and value.

With more than 45 lines, Target’s owned-brand business brings in more than $30 billion in sales each year. More than 10 of the brands each generate more than $1 billion in annual sales with the potential to become multibillion global brands over time, according to Target. Target’s owned brands span four categories: apparel and accessories; home; food and beverage, and beauty and essentials.

In addition to Cat & Jack, Target’s owned brands include Dealworthy affordable basics, Gigglescape toys, Up & Up essentials and Embark outdoor gear.

When Target released its financial results in March, it said it was doubling down on what’s working best to chase growth — planting more of its biggest stores into new markets, building on its quick-turn, same-day delivery momentum and continuing to push private brands.

According to Target, it will continue their expansion with Hudson’s Bay and “explore opportunities in new markets and with great retail partners to bring their brands to more consumers, with a focus on the long-term potential.”

“It’s been so exciting to see the way Canadian consumers have responded to the exceptional value Cat & Jack offers,” said Christina Hennington, Target’s chief growth officer. “That combination of amazing design, high quality and great prices sets Target’s owned brands apart, and we’re pleased to extend these brands to more consumers outside of our home market.”

“In everything we do, our focus is always customer-first,” said Liz Rodbell, president and chief executive officer of Hudson’s Bay. “Now more than ever, families are looking for quality, value and sustainability when shopping for their children. And when kids get dressed they want to be comfortable, be active and have fun in their clothes. Cat & Jack delivers on all that.”

Source: WWD