Will a new grocery private label spur more Target runs?
Grocery, it is no secret, is among the key categories that Target has focused on since Brian Cornell became the retailer’s CEO in 2014. It is also no secret that the chain’s performance in grocery has been uneven during that time. Now, Target is taking another run at grocery success with the introduction of a new private label line that includes a wide variety of products that are free of artificial flavors, synthetic colors, artificial sweeteners and high fructose corn syrup.
Good & Gather, the name of the new label, will kick off with 650 new items landing in Target’s stores on Sept. 15. The line of staples, which will expand to more than 2,000 SKUs by the end of next year, will stretch from shelf-stable categories to the produce aisle and the dairy case.
“Our guests are incredibly busy and want great-tasting food they can feel good about feeding their families,” said Stephanie Lundquist, executive vice president, food & beverage, Target, in a statement.
Ms. Lundquist called the development of Good & Gather, Target’s “most ambitious food undertaking yet” as the retailer sought to create “convenient, affordable options that do not cut corners on quality or taste.”
Target’s goal is for the new line to become its “flagship” grocery brand. As the retailer adds more SKUs with the Good & Gather label it plans to phase out its Archer Farms and Simply Balanced private labels while reducing the number of Market Pantry items it sells.
Brian Yarbrough, an analyst at Edward Jones, told CNBC that, while Target has made gains in its grocery business in recent years, it still has a long way to go. Grocery sales, he pointed out, are more than 50 percent of Walmart’s business, while only about 20 percent of Target’s. A strong private label presence is a key strategy to draw consumers more willing than ever to try alternatives to the large national brands.
- Meet Good & Gather, Target’s Newest (and Most Delicious) Brand Yet – Target Corporation
- Target is launching grocery brand Good & Gather in bid to boost its food business – CNBC
DISCUSSION QUESTIONS: How much progress do you think Target has made at improving its grocery business in recent years? Do you approve of the chain’s move to debut the Good & Gather line while phasing out the ArchersFarms and Simply Balanced labels and cutting back on Market Pantry?