Target, after many years of being into brands which are private-labeled in home goods and apparel will now be launching its own grocery brand.
The new line is called Good & Gather and its products will be available in the Target Stores from September 15 onwards. The retailers’ vision for the brand is to have 2000 items come the end of 2020.
The range of products will include pizza crusts, eggs, hazelnut, milk and peanut butter spreads to go with frozen vegetables, pastas and salad mixes.
Target’s expectation from Good & Gather is to be its largest private label and ultimately a multibillion-dollar brand.
Their head of food and beverage, Stephanie Lundquist has said that they have been working hard on this for the last two years and has emphasized on the role that this will play for the business of Target.
It has been observed by her that almost 75% of shoppers in the Target store add one food item to the basket and that is something which makes the shopper’s basket sizes lager by two times.
She also claimed that the fact that they provide a one-stop shop for their visitors.
Target though has faced criticism from analysts for their offerings in fresh foods and their products have been called lackluster and even an afterthought. The experts feel that Target isn’t the go to destination for a customer’s grocery needs, the customers feel more comfortable going to a store like Walmart.
However, some experts also feel that there is a potential in this business as Target up till now has only been getting 20 % of its business from grocery, a figure that is as high as 50 % for Walmart. What will aide them is that the consumers are now willing to buy private label products at stores.