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Target launches $1 billion kids line

July 11, 2016Written by Tom Ryan

Photo: Target

Target last week introduced Cat & Jack, a comprehensive kids and baby collection that the retailer expects will generate $1 billion in sales in its first year. The line, to launch this back-to-school season, will replace Circo, its long-term in-house brand, and Cherokee, a licensed brand. The two labels were successful and did about $1 billion in combined annual sales. Baby, kids and women’s ready-to-wear drove the discounter’s apparel gains in the first quarter. Covering 2,000 pieces of wardrobe staples and seasonal items for kids, toddlers and infants, Cat & Jack stands out because it was developed based on feedback from “hundreds of kids” along with their parents. Target noted on its blog that over 95 percent of the parents it surveyed talk to their kids and bring them into the decision-making process. "Real kids" will also be featured in advertising and social media spots supporting the launch. A front-page article in Bloomberg BusinessWeek described Cat & Jack as "optimistic, modern, wholesome, inclusive, fun" and an integral part of Target’s ongoing effort to recapture its “cheap chic” reputation after trading down during the recession. The goal is to expand its children’s lines at twice the rate of the same categories at competitors, such as Walmart, Kohl’s, Children’s Place and Old Navy. The overall children’s category at retail is seeing modest growth. However, Brian Cornell, soon after taking over as Target's CEO in 2014, cited four signature categories — Style, Baby, Kids and Wellness — as priorities for investments to support the company's stature in the marketplace. Mr. Cornell said on Target’s first-quarter conference call, “We feel very good about the progress we're making on signature categories where we continue to build market share and drive differentiation.”

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