BY Reuters3 minute read "Target is my backup option," said Chloe Guss, a shopper at the retail chain for nearly 20 years whose reservations about some of its products may spell trouble for the business. The New Yorker, 38, mostly shops at Target through her Instacart app for a few groceries and mainly diapers and formula for her children. But for clothing and furniture, Guss says she seeks out better quality elsewhere.
Target – jokingly pronounced "Tar-zhay" in faux French by fans and critics of its "cheap chic" offerings – is expanding its own brands as trendy, affordable designer home goods, cookware and clothing are no longer enough to keep its customers loyal. The Minneapolis-based retailer has more than 45 private labels, including Good & Gather and Favorite Day food brands, which generate more than $30 billion in sales each year. However, its total U.
S. retail market share, including online and store sales, has shrunk in categories that generate over 60% of its revenue, data from market research firm GlobalData shows. Target lost share in food and household goods, clothing, electronics, home wares and furniture in the first quarter, gaining only in beauty products.
Purchase rates and average spending per shopper have dropped, data provided by online shopping tracker PriceSpider shows. Target declined to comment, noting that CEO Brian Cornell said in May that Target was focused on sales growth, which it expects to begin in the current quarter. While major rivals said.