advertisement
advertisement

Here’s how Target’s design lab in Minneapolis has created six billion-dollar brands, and has more on the way

Here’s how Target’s design lab in Minneapolis has created six billion-dollar brands, and has more on the way
Target’s two-yearold Project 62 furniture line, which includes the Copley Plastic Counter Stool, has given the company new momentum. [Photo: Jamie Chung]





One room is full of sequins and kids’ clothes. Another has lamps and tables, and yet another houses beakers of various dishwashing detergents. This is Target’s Minneapolis-based design lab, where Julie Guggemos, the company’s senior VP of product design, leads the creation of hundreds of thousands of items for the company’s in-house brands. Over the past three years, she has launched more than 20 private-label lines, including midcentury-modern furnishings (Project 62), bright and quirky kids’ clothes (Cat & Jack), electronics (Heyday), and personal care and home goods (Smartly). Six of Target’s owned lines now do more than $1 billion in annual sales. Women’s fashion label A New Day, created in 2017, reached $1 billion in its inaugural year; Cat & Jack became a $2 billion business just as quickly. The Goodfellow & Co men’s line, another 2017 debut, sold 3 million pairs of pants in its first 12 months—twice the number of men’s chinos and dungarees Target sold across all brands the previous year. “[These lines] build loyalty,” says Guggemos. Nearly one-third of Target’s revenue in 2017 was related to its owned and exclusive brands, and comparable sales and store traffic were both up 5% year-over-year this past November.

advertisement
advertisement