Target begs your indulgence with its new store brand
Target this week released news that it will introduce a new wide-ranging snack products store brand that appeals to American’s desire to get a little decadent and self indulge.
Favorite Day, the new brand, will roll out in Target’s stores on April 5 as part of a shopping event of the same name. The line of more than 700 products, which covers segments such as bakery, beverage mixers, cake decorating supplies, candy, premium ice cream and salty snacks, is described by the retailer as a “high-quality, carefully crafted” and just right for those moments when its customers want to treat themselves.
“We’re thrilled to build on Good & Gather’s success and the strength of Target’s food and beverage business by debuting our new owned brand, Favorite Day,” said Rick Gomez, chief food and beverage officer, Target, in a statement. “Rooted in guest insights and developed by our talented Target team, Favorite Day is a sweet and savory addition that tastes amazing, makes life’s little moments of indulgence even sweeter and continues to differentiate Target’s owned brand portfolio.”
Mr. Gomez, who joined Target in 2013 and was named to lead its grocery operations in February, has received praise for launching the chain’s loyalty programs and for his role in driving its digital growth. Prior to joining the retailer, Mr. Gomez put in more than 20 years working for major brands, including MillerCoors, PepsiCo and Quaker Oats.
Grocery is one of the key pillars of CEO Brian Cornell’s growth plan since the category drives regular Target store runs and online orders for its delivery and pickup services. Target has announced plans to expand its assortment of groceries available for its in-store or curbside pickup programs to include more fresh, frozen and refrigerated items.
“When we studied the behavior of guests who first shopped for these items through one of these services last year, we saw an average increase in shopping frequency of about one visit per month compared with a control group,” said Michael Fiddelke, Target CFO on the chain’s fourth quarter earnings call. “On average, these guests increased their food and beverage spending between 20 percent and 30 percent and, importantly, spent about 20 percent more in other categories.”
- Target’s Newest Owned Brand is About to Become Your *Favorite* Indulgence – Target
- Keep on growing is Target’s mantra as chain announces leadership moves – RetailWire
- Target CEO says record-setting 2020 was no ‘fluke’ – RetailWire
- Target (TGT) CEO, Brian Cornell on Q4 2020 Results – Earnings Call Transcript – Seeking Alpha
DISCUSSION QUESTIONS: How likely is Target to replicate the same level of success with its grocery store brands as it has in categories such as apparel? Where do you see the biggest opportunities for Target to grow its market share in grocery?