Minneapolis—In a blow that may have repercussions for other licensed brands, Target has decided not to renew its apparel and accessories deal with Cherokee, which garners about 43% of its sales through Target and which has accounted for an estimated $1.1 billion in sales at Target last year.
According to a report in the Wall Street Journal, “Target decided not to renew the current deal, which is set to expire on January 31, 2017, in order to make way for newer clothing labels. That has been a directive of new CEO Brian Cornell who has been touting an emphasis on fashion and style at Target.”
“As Target prioritizes signature categories, including kids and baby, we are looking at our business in new ways, “Stacia Andersen, Target’s senior vice president of apparel and accessories, reportedly commented. ”We look forward to building on an already strong foundation, and are excited to introduce several new brands in the future.”
Target is chiefly looking for more limited collaborations, such as the highly successful one last spring with Lily Pulitzer.
Though Cherokee is strongest in children’s if also has clothing for adults as well. The company says it will continue to sell Liz Lange brand maternity clothing at Target.