After years of rolling out private-label brands in apparel and home goods, Target going all-in on the grocery business with a new food brand called Good & Gather.
Products from the new line will hit Target stores beginning Sept. 15, CNBC reports. The retailer said that by the end of 2020, the brand will have more than 2,000 items—everything from organic pizza crusts, milk and eggs, hazelnut and peanut butter spreads, frozen veggies, salad mixes and pastas.
Target said it expects Good & Gather will be a multibillion-dollar brand—and the largest of its private labels.
Today, nearly 75% of Target shoppers in stores are adding at least one food item to their baskets, says Stephanie Lundquist, head of food and beverage at Target, and when they do, their basket sizes are two times larger.
Still, analysts say that people don’t often seek out Target as a destination for all of their groceries, as they might at Walmart. Instead, a loaf of bread or a box of granola bars have been add-ons to Target baskets already filled with makeup and cleaning and office supplies.
Target’s move to add more groceries comes at a time when the grocery industry is in flux, and shifting to a more niche, specialized model for grocery chains. Read a recent Business Report cover story about the local grocery scene and how businesses are adapting here, and the full CNBC story here.
