The news: Target and Levi’s are deepening their partnership as both aim to capitalize on surging denim sales.
What’s in it for Target: Strengthening ties with Levi’s could provide a much-needed merchandising boost as Target tries to reclaim its style authority under new CEO Michael Fiddelke. Denim is already a strong performer for the retailer, with both sales and market share growing in 2025. Levi’s brand heat combined with Target’s value could help bring shoppers back and reignite interest in the rest of the retailer’s discretionary offerings.
What’s in it for Levi’s: While Levi Strauss is primarily focused on growing its D2C business, it sees wholesale as an important channel “to amplify the brand and reach our consumers where they choose to shop,” CEO Michelle Gass said on the company’s Q4 earnings call. Partnerships with the likes of Target are opportunities for Levi’s to showcase its broadened assortment and support its drive to become a head-to-toe denim lifestyle brand.
At the same time, its expanded Target presence will enable it to retain price-sensitive customers even as it pursues the premium market.
The implications: Target’s expanded Levi’s partnership is a promising move, but it doesn’t solve the retailer’s broader merchandising problems. The company has historically relied on big-name brands to drive interest in its assortment. Now, Target needs to focus on creating the internal conditions required to consistently produce products that are high-quality, stylish, and accessible—or risk ceding its affordable style crown to companies like Walmart.
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