Target is going to the beach, and in a big way. The retailer just introduced its spring fashion collection, a series of travel-themed limited editions that scream summer holidays.
The retailer has a reputation for fashion drops that cause online stampedes, and this year's collaboration has that potential. The collection includes more than 100 designs from Agua Bendita, with prints that show off the nature and beauty of Colombia; Fe Noel, with its Caribbean vibe; and Rhode, with a series of globally inspired prints.
All three fashion labels are women-owned.
Items go on sale April 15 and are priced from $15 to $48.
The drop comes as worries about consumer spending -- especially on apparel -- cloud retailers' sales outlook.
Target managed to eke out small sales gains in its most recent quarterly results. But it warned investors to expect continued slow growth as middle-income customers struggle to balance inflation and rising interest rates.
Michael Fiddelke, Target's chief financial officer, recently reiterated the company's view that it is still difficult to predict the consumer backdrop. In comments made to Rupesh Parikh, the Baird analyst who interviewed Fiddelke at a recent industry event, Fiddelke also said Target customers are sensitive to promotions, showing they're still concerned about saving money. So the company is planning more cautious merchandising in discretionary categories.
Target also elaborated on the growth potential in Roundel, its retail ad network, which may grow to $2 billion in revenue from $1 billion.
According to Mastercard Spending Pulse, plenty of shoppers are likely to stock up at Target before packing their bags. The study showed travel spending increases as consumers splurge on trips they didn't take in 2022. And U.S. consumers spent 43% more on lodging in February than in February 2021, 16% more on airlines and 14% more on restaurants. Those increases, reflecting suppressed growth in 2022, outpaced gains in retail sales.