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How Target Leveraged its Direct Sourcing Strategy as a Competitive Differentiator


Executive Summary

In this report, we look at the key elements of Target’s direct sourcing strategy that have helped the company successfully build its collection of private labels.

  • In the year ended January 2019, owned and exclusive brands accounted for around one-third of Target’s total sales.
  • Part of Target’s success in private label has been building direct sourcing networks – especially from suppliers in China.
  • Target has also focused for many years on sustainability initiatives that include operations, its stores and of course, supply chain – providing Target with the opportunity for greater customer loyalty as consumers expect retailers to be socially responsible (in an ESG, Environmental, Social and Governance framework).

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