An article in Retail Dive, examines how Target's private label strategy has successfully cultivated 48 private labels, 10 of which are worth billions of dollars.
Target's strategy took a long time to grow, but they redefined private label as cost conscious yet high quality, a gap in the private label space.
Target's private label strategy has not gone without criticism - see the article from Fast Company, describing how Target goes after whole brands.
Private labels usually grow during inflation, as consumers look for more budget friendly alternatives; however, for items where quality is low this is not a recipe for sustaining private label growth.
The article looks at how Bed Bath and Beyond, Walmart, and Macy's are all pushing private label growth, what this means for retail and the consumer.