Can Target Sell Its Customers Higher-End Jeans?
Target (NYSE: TGT) has built its apparel business around owned and operated brands, as well as partnerships to distribute mass-market, generally lower-end brands. It's a strategy that has the company partnering with Hanesbrands to sell Champion (a deal that's being winded down) rather than carry Nike or UnderArmour.
Essentially, the retailer has offered low-cost, high-value clothing, whether from its own brands or through partners. That's how the chain has worked with Levi Strauss & Co. (NYSE: LEVI): For about 10 years, Target has sold DENIZEN, a value jeans brand made by Levi Strauss.
That deal made sense, as it allowed Target to offer reasonable quality jeans from a respectable, albeit not-that-trendy manufacturer at an appealing price. Now, however, Target is expanding its relationship with the jeans maker to sell its Levi's Red Tab label, which includes the company's higher-end, better-known lines.
Source Fool.com
