Target’s private label business is booming.
That is how Brian Cornell, chairman and CEO of the Minneapolis-based retailer described the segment at a time when many retailers are seeing sales of store-branded products rise.
In an interview with Yahoo! Finance, Cornell said Target today has a $30 billion own-brand business that performed “incredibly well” throughout the pandemic and continues to grow.
“Whether you’re shopping for Good and Gather, or getting something for yourself from (Target’s apparel brand) Goodfellow...or shopping any of our great brands…this business continues to perform and will perform over the holiday season,” Cornell said.
Looking toward the holiday season Cornell is feeling positive based on feedback he has received from Target shoppers.
“The one thing we’ve heard throughout the year is (shoppers) want to enjoy and celebrate seasonal moments,” he said. “They’re looking forward to Thanksgiving and celebrating with family and friends. And they’re looking forward to the Christmas holidays. So we know the consumer in America, the guests that shop at Target, they are excited about seasonal holidays. And we're going to be ready to make sure we delight them.”
The Target CEO was also asked about the recent announcement that Kroger and Albertsons would merge. Like most others in the retail world, Cornell said he will be watching closely how the deal comes to fruition.
“We’re continuing to focus on our food and beverage business,” he said. “We’ve seen really strong growth and market share gains for more than 20 consecutive quarters. So the strength has really connected with the guest during the pandemic and what has come out of the pandemic is really a strong driver of growth.”
Noting that Target is “all in” on the food and beverage business, he reported that its Good and Gather private label brand accounts for $2 billion in sales