Target Stores Sell Caraway Pots & Pans in Online Cookware’s Biggest Push into Brick-and-Mortar
CNBC | October 18, 2022
Online cookware company Caraway is making its biggest push yet into brick-and-mortar stores, with its pots and pans debuting in 350 Target stores this week.
Target will become the largest retailer to sell the brand in stores. Select Caraway products also are sold in 80 Crate & Barrel stores, 80 Bed Bath & Beyond stores and 20 Nordstrom outlets. The New York City-based startup is among the many brands that became popular by selling directly to shoppers online and have since turned to stores to drive growth and appeal to a wider customer base.
Stores can help win over new customers, particularly those who might be hesitant about springing for a roughly $400 cookware set, Nathan said. Plus, he said, retailers like Target have large wedding-registry businesses that can encourage sales and the selection of more expensive items.
Target said in a statement that Caraway’s addition is part of a broader effort to attract customers with an interesting mix of merchandise, from young brands and unique items to popular national names. It sells other digital-first and direct-to-consumer brands. Earlier this month, it began selling an exclusive line of Tupperware, a brand that has been typically sold in person at parties and online.
Direct-to-consumer brands may want more shelf space ahead of this holiday season for another reason, too. Shoppers are expected to do more of their buying in person as Covid-19 concerns fade and inflation fuels the demand for deals. About 40% to 50% of Caraway’s sales also take place in the fourth quarter, when shoppers buy gifts or get ready to hold holiday dinners and parties, according to Nathan. That is roughly in line with typical kitchen category sales.
Since launching in November 2019, Caraway’s nonstick and nontoxic cookware has gotten picked up by retailers’ websites, including West Elm, Crate & Barrel, Zola and Amazon. Target began selling the brand online last year. Caraway, a privately held company, does not disclose sales figures. The company has been profitable in 2020 and 2021 and is on track to be profitable in 2022, Nathan said. He said about 75% of the company’s business comes from its own website. Over time, he said he expects Caraway to get about half of sales from other retailers’ websites or stores.
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