Target Corp.
TGT,
+0.31%
is taking another leap into the white-hot arts-and-crafts category with a new private-label brand, Mondo Llama.
Mondo Llama, the retailer’s first arts-and-crafts brand in more than a decade, will have 400 items including paint sets, drawing kits and canvases. Most items will be priced below $25.
Mondo Llama launched on March 14 with most items available by March 28.
Mondo Llama is being introduced during an uptick in demand for crafting products during COVID-19. With people spending more time at home, arts-and-crafts projects have proven to be popular pastimes.
Arts-and-crafts retailer Joann Inc.
JOAN,
+0.26%
began trading last Friday. Michaels Cos. Inc.
MIK,
+0.21%
announced earlier this month that it was being taken private in a $3.3 billion deal. And Dollar Tree Inc.
DLTR,
-0.43%
said during its earnings that it has completed the rollout of its Crafter’s Square expanded arts-and-crafts department.
See: Joann is going public: 5 things to know about the arts-and-crafts retailer
And: Dollar Tree expanding in fresh food, higher prices, and new store formats
Last week, Target announced the launch of a new snacking brand, Favorite Day, in April.
Target said during its most recent earnings announcement that it has 10 owned brands with $1 billion in sales, including four with more than $2 billion in sales.
Another food brand, Good & Gather, is among those generating $2 billion in sales.
“Target’s outsized sales growth in 2020… allowed it to accelerate trial of both its private label brands & digital capabilities, which we believe provides Target with a strong foundation entering 2021,” wrote Bank of America analysts in a note following an event featuring Target’s Chief Financial Officer Michael Fiddelke.
“Private label brands (currently ~1/3 of Target’s sales) have higher margin profiles vs. national brands and also create customer loyalty given their high quality and exclusivity to Target.”
Bank of America rates Target shares buy with a $260 price objective.
Don’t miss: Target to launch another food and beverage brand in April, Favorite Day
Target stock has soared 78.9% over the past year, outpacing the S&P 500 index
SPX,
+0.00%,
which is up 45.5% for the period.
