Hollister is teaming up with Target to sell bedding and sleepwear

Abercrombie & FitchHollister is branching out and collaborating with its apparel roots goal to begin selling home and residential decor for the first time as both brands look to new categories to drive growth.

The collaboration, called The Hollister Collection at Target, will launch online, in most Target stores and select Hollister locations on June 28 and will feature approximately 60 items across men’s and women’s apparel and bedding.

Hollister’s tie-up with Target comes as both companies face a decline in discretionary spending and declining consumer confidence, forcing retailers to get creative to entice shoppers to spend.

Hollister, Abercrombie’s brand targeting shoppers ages 13 to 22, has had comfortable growth for most of the past year but is looking to become a lifestyle brand that sells more than apparel. By offering a broader assortment, especially across a larger footprint, Hollister can acquire new customers, encourage existing shoppers to spend more and create a new pipeline for organic growth.

On the other hand, Target already has a large home and residential decor division but has long relied on brand collaborations as a competitive advantage, especially because they are not popular with competitors. Walmart. Throughout the company, she regularly brought on top names like Kendra Scott, Diane von Furstenberg, Bombas, and Champion, even before she dealt with slowing sales and shrinking profits.

For both companies, the collaboration provides access to the lucrative back-to-college shopping market, which reached $88.8 billion last year, or about $1,325 in spending per person participating, according to data from the National Retail Federation.

In this market, spending on residential or apartment furniture has been growing steadily for more than a decade. In 2025, it will reach $12.8 billion, second only to electronics or computer-related equipment.

Hollister’s expansion into home and residential decor comes as sister brand Abercrombie & Fitch expands to include outdoor footwear brands such as Puma, Sperry and Hunter as a way to drive growth. In interviews with CNBC, executives said expanding the category across the business could attract new customers and entice existing shoppers to spend more.

“With Target’s presence, we should be able to expose the Hollister brand to people who don’t shop with us today,” said Corey Robinson, the company’s chief product officer, who oversees the Abercrombie and Hollister brands. “And with these customers who love us so much today, being able to be a bigger part of their lives is something we look forward to.”

Under the terms of the collaboration, Hollister and Target work together to design the products while Target, because of its expertise in the field, handles the manufacturing, Robinson said. The collaboration will continue at least through next year with drops expected during the fall, holiday and spring 2027 shopping seasons.

“Moving beyond just bedding and thinking about blankets, wearable blankets, plush, is how we will evolve the partnership,” Robinson said. “With our target age, college housing is top of mind. From a seasonal perspective, there are a lot of ways you can revamp and decorate your dorm based on seasonality.”