For the latest quarter, Target’s apparel sales were up more than 10 per cent. This also helped to strengthen the retailer’s profit margins. In the fashion department, it has refreshed stores to make individual brands look more like their own mini boutiques, with more mannequins and table displays showing off merchandise. It has launched dozens of in-house apparel brands over the past three years, such as A New Day for women, Auden for lingerie and Goodfellow & Co. for men. The commitment to a new store operating model, where there are dedicated business owners in that apparel category, is driving results. The combination of the work done with its own brand assortment, adding some new national brands like Levi’s in select stores, the service delivered in stores, and the inspiration created online has come together.
For Target, apparel has been one of the highlights of the quarter. Apparel margins are healthy because Target is selling more clothes at full prices, even at the end of the season. During the latest quarter, Target generated some buzz with its anniversary collection, which celebrated all of the designers the company has partnered with in the past. The collection has been driving footfalls to stores.