(Adds analyst comment in paragraph 6) By Neil J Kanatt Oct 8 (Reuters) – Loop said on Wednesday its earplugs will be available in over 600 Target stores starting this month, marking the Belgian startup's entry in traditional brick-and-mortar retail in the United States. Designed to look like fashion accessories, Loop's earplugs aim to reduce ambient noise while maintaining sound quality, making them popular not only among customers looking to improve their sleep but also at music festivals like Coachella and Tomorrowland. The move marks a shift from its online-only model, as the company aims to capitalize on holiday gifting and impulse purchases through the partnership, even as inflation and tariff-related fluctuations affect consumer confidence. "For us, it's just a different way to reach those customers … Right now, customers don't really have an option to buy it last-minute," Loop co-founder Maarten Bodewes told Reuters. Retailer Target, which has been struggling to stir up demand amid strained consumer spending, has expanded its wellness segment by launching over 2,000 new items at the start of 2025. "Target is stuck in a rough patch, but it's leaning into wellness to steady the business and reignite shopper interest," eMarketer's Zak Stambor said. Founded in 2016, Loop has sold over 13 million pairs of earplugs online, priced between $24 and $59. The company gained traction globally through partnerships, including a collaboration with the McLaren Formula One team in 2024. Loop previously had limited retail presence in Europe, but pivoted to online-only after revenue dropped nearly 90% during the pandemic's onset. In 2020, Loop raised $1.12 million in seed funding and shifted its focus from just nightlife users to target new customer segments and use cases for its products, including helping with sleep. This helped the company rake in sales of about 190 million euros ($221.67 million) in 2024, up from 1 million euros in 2020. Loop, which manufactures most of its inventory in Shenzhen, China, and derives about 40% of its sales from the U.S., does not expect Donald Trump's fluctuating tariffs to significantly impact its costs. Bodewes said the manufacturing costs remain relatively low, with tariffs expected to cause only about a three percentage point increase. ($1 = 0.8571 euros) (Reporting by Neil J Kanatt in Bengaluru; Editing by Vijay Kishore)
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