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Target Partners with Champion for Exclusive Sportswear Line to Boost Apparel Sales

Prime Highlights: 

Target has struck a multiyear deal with sportswear brand Champion to launch an exclusive collection of over 500 items, including apparel, accessories, and sporting goods. 

The collection will be available starting in August, with most items priced under $40. A limited-time varsity-inspired line will debut in September. 

Key Background: 

Target has entered a multiyear agreement with sportswear brand Champion to introduce an exclusive collection of clothing and accessories. Set to launch in August, this partnership will offer more than 500 items, including apparel for adults and children, sporting goods, and accessories such as baseball caps, sweatshirts, shorts, and duffel bags. Additionally, a limited-time collection inspired by varsity styles will debut in September. The majority of items in this new line will be priced under $40. 

This move is part of Target’s broader strategy to strengthen its apparel category, which contributes around 15% to its annual sales. The company is keen to improve sales in higher-margin areas like clothing and home goods. Target has experienced mixed performance in apparel, with a positive year-over-year trend in the second quarter of fiscal 2024, but a decline in growth during the third quarter. The new partnership aims to revitalize this segment by appealing to consumers with fresh, stylish, and affordable options. 

Target’s Chief Commercial Officer, Rick Gomez, highlighted the success of previous limited-edition collaborations with other brands, including Levi’s and Ulta Beauty, which have drawn shoppers into stores. With the Champion collection, Target plans to differentiate itself by offering sportswear that combines comfort and style, rather than focusing solely on performance-driven pieces. 

This deal also comes as Target works to recover from a challenging year, during which its stock fell about 16%, underperforming the S&P 500. The retailer is hoping that this collaboration, along with its ongoing efforts to refresh its merchandise, will help drive sales growth and attract more shoppers.