Will Good & Gather spur Target’s grocery sales?
Will Target’s new Good & Gather private brand line spur more sales in the retailer’s grocery department? That’s the question asked in a recent Forbes story headlined, “Why Target Is Making Its Biggest Private Label Bet On Grocery.”
In the story, it’s cited that food and beverages represented just 20% of Target’s $74.4 billion in sales last year, according to the Minneapolis-based retailer’s annual report. Walmart’s grocery sales in the fiscal year that ended Jan. 31 totaled $184.2 billion, or about 56% of the total for the retail giant’s biggest unit.
Even though Target is known for its store brands and exclusive lines of apparel and home goods items that have helped generate revenue, the company has lagged as a place where consumers do their grocery shopping, according to Forbes.
Target announced earlier this week that it is doubling down on its grocery business by rolling out Good & Gather on Sept. 15 across its physical and digital platforms. The Good & Gather line will include more than 2,000 products across food and beverage — from dairy to produce, ready-made pasta and meats to granola bars and sparkling water. All of the products under the Good & Gather brand will be made without artificial flavors and sweeteners, synthetic colors and high fructose corn syrup, and are backed by a money-back guarantee.
According to Forbes, this is an area that Target could improve, since grocery items are a high-stakes battleground in which Target and its rivals are trying to drive consumers to stores or online. The Good & Gather line demonstrates the company’s strategy of differentiating its merchandise within its grocery department.
To read the Forbes article, click here.