Dive Brief:
- Target is partnering with Warby Parker to open five shop-in-shops during the second half of this year, the retailers said in a Thursday announcement. Warby Parker employees will run the shops, which will offer glasses, sunglasses, contacts, eye exams and vision screenings
- The Warby Parker shops will open at locations that don’t have a Target Optical store. The first group of shops are slated to open at Target stores in Illinois, Minnesota, New Jersey, Ohio and Pennsylvania.
- Warby Parker will also debut on Target’s website with the opening of the first shop-in-shop. More Warby Parker shops are slated to open in 2026, the companies said.
Dive Insight:
The arrangement with Warby Parker adds to Target’s growing roster of in-store partnerships with brands like Ulta, Apple and Starbucks. Target said its latest partnership will complement its own optical business, which is offered at more than 500 of the big-box retailer’s nearly 2,000 stores.
“Warby Parker at Target reflects both brands’ commitment to style, affordability, quality and convenience,” Christina Hennington, Target’s chief strategy and growth officer, said in a statement. “As we test and learn with this new partnership — bringing Warby Parker’s expertise into select stores — we’re enticing new consumers to discover more of Target.”
Target has sought to maintain its focus on newness with a multitude of partnerships in recent years. On Wednesday, Target announced a strategic partnership with Champion that will see the apparel and sporting goods brand return to the retailer’s stores and website after a five-year hiatus. Target added Peloton apparel to its marketplace in January and in 2022, it began a deal with FAO Schwarz to offer toys in stores and online.
For Warby Parker, the need and desire to meet customers where they shop is undergirding the partnership with Target, Dave Gilboa, Warby Parker’s co-founder and co-CEO, said in a statement.
“We’re excited to explore an entirely new retail format that brings our holistic vision care offerings — from prescription glasses and contacts to eye exams — to more people around the country,” Gilboa said.
The eyewear company also reported its fourth-quarter and full-year earnings Thursday. Warby Parker reported its Q4 net revenue rose more than 17% to $190.6 million, while full-year net revenue rose 15.2% year over year to $771.3 million. Gross profit was $427 million for the year, while the company narrowed its annual net loss from $63 million to $20 million.
Warby Parker said the number of active customers rose nearly 8% to 2.5 million. The average revenue per customer rose nearly 7% to $307.
Warby Parker’s full-year guidance is for net revenue ranging from $878 million to $893 million, which tracks to about 14% to 16% growth versus 2024. The company plans to open 45 stores, including the five in partnership with Target. Warby Parker, which marked its 15th anniversary this month, opened 41 stores in 2024, ending last year with 276 locations.