Target Australia is adjusting its retail strategy to address changing consumer priorities amid ongoing cost-of-living pressures, according to Aleks Spaseska, the company’s managing director. The move focuses on balancing quality and affordability to attract shoppers who remain selective about their spending.

Spaseska pointed to the rapid sellout of an $89 cashmere jumper launched earlier this year as evidence of shifting demand. Despite the economic challenges facing many households, the jumper’s popularity highlighted an appetite for higher-quality products offered at accessible prices. “Customers are very savvy; they understand quality when they see it, and when you deliver that at an unbelievable price point, they respond well,” Spaseska said.

During a recent fashion event in Melbourne, Target showcased its latest apparel and homewares collections, featuring styles such as barrel leg jeans, capri pants, and premium European linen. The audience, largely female and engaged via social media influencers, demonstrated enthusiasm for these elevated yet affordable offerings. This event underscores the company’s broader effort to revitalize its brand while competing against specialty retailers and private labels.

Under Spaseska’s leadership, Target — along with Wesfarmers-owned stablemate Kmart — is investing heavily in design and fabric quality. Together, they employ a team of 120 designers, the largest in the retailer’s history, focusing on apparel and soft home furnishings as key areas to differentiate from competitors. The emphasis on premium materials including Australian cotton, merino wool, and European linen supports this strategy.

Spaseska emphasized that while cost-of-living concerns remain front of mind for many Australians, consumers continue to show resilience and are making deliberate choices to maximize value. “Value matters deeply and more than it ever has. Customers are pulling back in different ways but respond strongly when presented with a high-quality proposition at a good price,” she said.

The company views this approach not only as a way to meet consumer expectations during uncertain economic times but also to ensure sustainable returns for shareholders. Target aims to leverage its brand heritage of delivering “really good quality products at low prices” to maintain relevance and market share.

With interest rates, fuel costs, and inflation factors affecting household budgets, Target’s repositioning reflects a nuanced response to current retail conditions. By doubling down on elevated quality while keeping price points competitive, the retailer hopes to navigate the evolving shopping landscape and continue appealing to discerning customers.