Target bringing back a customer favorite (to save you money)

As the retail landscape continues to evolve and consolidate in the 2020s, competition increases, which typically means good things for the customer. 

It's true that many legacy stores, like Bed Bath & Beyond, Party City, and Joann Fabrics haven't fared particularly well, and customers seeking craft stores or cheap home and party supplies may have to look elsewhere. 

Related: Popular retailer could be in for a major change (whether it likes it or not)

But in the case of the biggest players, competition is fiercer than ever, and in many cases this incentivizes the remaining retailers to undercut each other's prices or attract customers with other promotions or prospects they may not find elsewhere. 

Take, for example, recent reporting about Target  (TGT)  weighing the possibility of adding a paid membership option for customers. Two of its biggest competitors, Walmart  (WMT)  and Amazon  (AMZN)  already have such an option in the form of Walmart+ and Amazon Prime. But many folks may prefer to shop at Target, and adding a potential new option for something like expedited shipping, members-only deals, and perhaps some other perks and benefits is a tempting prospect for investors and customers alike. 

But Target is already behind the eight ball, as both Walmart and Amazon have already had years to test and iterate their membership options. Still, the red and white Minnesota-based retailer has plenty of loyal customers who will likely either hold out or switch once it begins the rollout. But where do these loyal shoppers come from? 

Target doubles down on a winning strategy

One of the reasons Target is so beloved is because it offers so many quality items at reasonable prices. This may sound obvious, but Target's approach is slightly different from its competitors. 

The superstore offers about 50 in-house brands, which include home decor lines, beauty and personal care, sustainable cookware, formal wear, athletic apparel and swimwear, and party supplies. Often these labels are offered at lower prices than external brands, and Target devotees remain inextricably loyal. 

For example, All in Motion, Target's athletic and leisure brand, brought in $1 billion of revenue just one year after its launch. All together, Target's owned brands bring in $30 billion in annual sales. 

And beginning in 2024, Target is re-upping its popular Up&Up line, which is composed of household goods like cotton buds, hand soap, and puppy training pads. As it stands now, the line brings in approximately $3 billion in annual sales. Now, Target plans to add hundreds of new items to the line and refresh formulation and packaging of many products. By 2025, Up&Up is expected to carry over 2,000 products, many of which will retail for $15 or less. 

Some of these refreshed items include: 

• Better toothbrushes: Improved shape, texture, and longevity.
• More durable storage: Food storage containers will be thicker and more durable.
• Refreshed scents: Many personal care products, like lotion and soap, will have reformulated scents for everybody.
• Updated packaging: Font will be bigger and labels will be brighter for easier use and access.
• Improved comfort: Many personal care products that come in bottles, like sprays or washes, were developed with occupational therapists for easier handling.

The new rollout will begin in February 2024 and Target will continue to roll out new items through early 2025. Some of the initial changes will come first to personal care products like cotton cleaning products, pet cleaning supplies, dental care products and baby products. Other anticipated changes will affect Up&Up pain mitigation medications, paper products like napkins, protein powder, batteries, computer accessories and more.