Wild Fable offers apparel, accessories and footwear for young women with products all priced at less than US$40

Wild Fable offers apparel, accessories and footwear for young women with products all priced at less than US$40

US department store retailer Target Corp has set its sights on becoming the ultimate destination for Generation Z – a demographic expected to become the largest consumer segment over the next few years – with two exclusive new clothing lines.

Wild Fable and Original Use are the latest offerings under Target's new finance model, which aims to introduce more than a dozen new brands and promises an overhaul of stores, digital channels and supply chain.

The Minneapolis-based retailer has already launched an exclusive line of affordable maternity fashion, Isabel Maternity by Ingrid & Isabel, denim-based women's lifestyle brand Universal Thread, and JoyLab, its new activewear brand.

Now, the business is targeting the often elusive Generation Z customer. Gen Z holds US$44bn in buying power and is on track to becoming the largest consumer segment over the next few years, representing significant sales growth potential.

Due to launch in August, Wild Fable offers apparel, accessories and footwear for young women with products specifically designed under a "mix and match" approach, and all priced at less than US$40 in sizes 0 to 26W.

Meanwhile, street style-inspired Original Use "empowers young men to experiment with and refine their personal style," says Target. Also due to launch in August, the line ranges from $10-$40 and every item is available in big and tall sizes.

In addition, Target says it is customising its marketing and shopping experiences with younger customers in mind. They love browsing in-person, with some 98% shopping in physical stores, but they're big fans of digital and social media, too, the retailer says, noting it is working on new ways to engage with the demographic.

"The introduction of these new brands provides us with a really exciting opportunity to create stronger relationships with the next generation of guests and show them, authentically, the role Target can play in their lives now and into the future," says Rick Gomez, executive vice president and chief marketing officer, Target. "Younger guests are looking for support to express their creativity and individuality, whether that's what they wear or how they show up in the world. Target can help them do just that by creating brands and experiences that reflect their interests, lives and voices."

Jennifer Sherman, senior vice president of product and strategy at cloud-based unified commerce platform provider Kibo, notes if Target delivers on a promise of a new in-store experience with user-generated content and consistency between social media imagery and the in-store experience, it could flip the script and entice a new generation of shoppers into its stores.

"According to our recent research, consumers are increasingly seeking out a differentiated shopping experience -- one that provides a rich, informative, and personalized online and in-store experience," she adds. "What's more, we have found that 54% of consumers (all consumers, not just Gen Z) prefer to go to a retail store when researching brands, products, or services. It's great to see Target giving due importance to their stores, saying once and for all that the physical store is not dead and that effective retail should be a seamless combination of online and physical assets."

Sherman adds, with this announcement, Target is also accelerating the trend we have long seen of retailers becoming brands and brands becoming retailers, this time with a much more targeted brand strategy.

"Target isn't just leveraging one house brand but building out multiple brands all targeted at different aspects of the same demographic. With these new exclusive lines aimed at Gen Z, as well as their further unification of the online and in-store experience, Target has taken a step to one-up their competitive stance against Amazon, who has been desperately trying to figure out a way to reign in the spending power of youth who don't have credit cards," she says.