Target Launches New Ultra-Low-Cost Brand Dealworthy
Image Credit - Target
17 February, 2024

Target Launches New Ultra-Low-Cost Brand Dealworthy

Target's new low-cost brand Dealworthy is rolling out this month in stores and online. With items starting at under $1, it is aimed at budget-conscious shoppers. The low prices on basics like phone chargers, paper plates and underwear will likely appeal.

This positions Target to compete with dollar stores and Amazon Basics as inflation squeezes what people can spend. Dealworthy's prices are among Target's lowest, with some electronics half what comparable brands cost. Most items are under 10 bucks, and some are less than a single dollar.

Target shoppers have been wanting more affordable options lately as money has gotten tighter for many households. So Dealworthy appeals by offering ultra-low opening prices on everyday necessities.

But even as Target courts budget shoppers, competitors like Dollar General face issues too. Factors like cuts in food stamp payments also impact Target's core lower-income customers.

Target's 45 private label brands are quite popular, making over $30 billion in yearly sales and setting them apart from other stores. However, recent pullbacks on discretionary goods led to two quarters in a row of falling sales for the first time in six years. Backlash over Target's Pride collection last summer also hurt.

With Dealworthy's rock-bottom cheap prices on key basics, Target aims to keep shoppers seeking relief from inflated costs. The new value brand helps Target compete in an environment where Americans face inflation squeezing their buying power.