Target to sell home, baby items by DwellStudio

NEW YORK, Jan 17 (Reuters) - Target Corp (TGT.N: Quote, Profile, Research, Stock Buzz) said on Thursday it will begin selling a new line of home and baby items designed by home furnishings company DwellStudio, as the discount retailer adds more exclusive merchandise to its stores.

Target said the DwellStudio for Target line, which will be sold in stores and online, includes bed linens for adults and babies, nursery furniture, and accessories for the kitchen and table.

The DwellStudio for Target baby collection will launch this month, while it said the home collection will be available in February.

Target is known for collaborating with well-known designers to bring exclusive lines of merchandise into its stores.

But Target suffered a blow earlier this week when it said it was ending its five-year contract with designer Isaac Mizrahi after he was named creative director of the Liz Claiborne brand.

Target's collaboration with Mizrahi helped pioneer the concept of designer fashion at mass-market retail chains.

But Target has said it remains "confident" that it will be able to continue to drive sales by partnering with other designers. (Reporting by Nicole Maestri, editing by Maureen Bavdek)