Target thinks bigger
In a move sure to benefit eco-minded customers with tight budgets, Target plans to nearly double its selection of natural and organic products this year. The Minneapolis-based company, which is the second largest discount retailer in the country, hopes to net up to $1 billion from the sale of 200 new products, comprising 31 brands which will be sold exclusively at Target for the first six months.
These new green products are part of the Made to Matter initiative launched by Target last April, which challenged its brands and suppliers to create innovative new products. As part of the initiative, Target unveiled 16 exclusive brands, totaling almost 100 new products, such as non-aerosol air fresheners and unbleached diapers.
According to Kathee Tesija, executive vice president and chief merchandising and supply chain officer, the Made to Matter brands collectively represent one of the top ten sellers in Target’s catalogue.
Many of the organic products will be new
Of the products in the Made to Matter initiative, 75 percent are new, while the remaining are natural versions of pre-existing products. Brands featured in the Made to Matter program have already experienced a 30 percent growth in sales, indicating that customers may be more likely to purchase a product if there is a natural version or flavor available.
Besides which, Target executives have reason to be optimistic, as growth in the organic products sector occurs 1.5 percent faster in the overall market than other products. Target netted an estimated $73.2 billion in sales last year, and profits will likely increase with the introduction of more natural and organic products.
Under the leadership of their new CEO Brian Cornell, Target hopes to distinguish itself from other retailers, and offering sustainable products is one way to appeal to a customer base looking for products that are affordable, but also made from healthful, natural ingredients.
Some of the new Target brands include Paddy’s Bathroom, which makes mild soaps with natural ingredients, and Happy Baby, which makes organic, vegetable-based baby foods.
