Target Puts Signature on Levi’s Deal

Discussion
Jan 16, 2004
George Anderson

By George Anderson


Target has made a me-too move with the announcement it would sell Levi Strauss’ discount store line of jeans under the Signature brand. Wal-Mart has carried the Signature brand
since it launched six months ago.


According to an Associated Press report, Target intends to retail the new Levi’s line for under $25. Wal-Mart sells Signature jeans for an everyday price under $20 in
some locations.


Moderator’s Comment: What are your thoughts on Target’s deal to sell Levi’s Signature line of jeans?


The Associated Press piece correctly points out that this deal is more important to Levi Strauss than it is to Target. More than 30 percent of jeans sold
today are made in discount stores.


We’d like to see Target use Levi’s to differentiate itself from Wal-Mart by negotiating to carry its more expensive Red Tab jeans in addition to the Signature
product.


The shopper demographic at Target makes it a natural to market using a three-tiered approach to a limited number of popular product categories with store
brand (lowest price), national brand value offering (intermediate price) and national brand premium items at a price below specialty and department stores (highest price).

[George
Anderson – Moderator
]

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