(Reuters) - Target said on Thursday it will offer some everyday essentials at prices starting less than a dollar as part of the retailer's new private-label brand.
The move comes at a time when value-conscious customers are increasingly opting for cheaper private-label brands as cost-of-living pressures strain household budgets.
Prices of products such as apparel, cosmetics and electronic items that are housed under the private-label brand, known as dealworthy, will start from less than $1, with most under $10, Target said, adding that the goods will arrive in stores and on Target.com this month.
"We know that value is top of mind for consumers and dealworthy ... will not only appeal to our current guests but position us to attract even more new shoppers to Target," Rick Gomez, Target's executive vice president, said.
A Labor Department report on Wednesday showed U.S. consumer prices rose more than expected in January amid a surge in the cost of rental housing.
Rival retailers such as Walmart (NYSE:WMT) and ecommerce giant Amazon.com (NASDAQ:AMZN) also have low-price brands targeting customers looking for bargains on food and household items.