Target is rolling out hundreds of new food products, including gourmet pastas and pizzas
Melissa Repko, CNBC,TODAY
via Yahoo News - September 4, 2020
Target has benefited from Americans turning into chefs and bakers during the coronavirus pandemic.
The big-box retailer wants those consumers to see it as a grocery destination now and in the future. This month, it is adding hundreds of new food and beverage items that shoppers can only find at its stores and on its website. It’s also launching a new premium line, Good & Gather Signature, with about 60 small-batch Italian sauces, gourmet pastas and pizzas and specialty coffees that cost $2.99 to $9.99.
The new items are part of Good & Gather, Target's private label that debuted a year ago and recently reached $1 billion in sales. With the expansion, the brand will have about 2,000 items, making it Target’s largest in-house brand by assortment.
The effort is a bid at winning more market share from competitors like Walmart and Kroger. Target has lagged behind its rivals in the grocery aisle. According to UBS, the company was the seventh largest grocer by market share in 2019, with nearly 3% of market share. Walmart and Kroger dominated the category with respective market share of about 21% and 10%.
It’s also taking a page from its own playbook. Target already has well-loved exclusive brands in other categories, such as Cat & Jack for children’s apparel and Hearth & Hand, a home decor line developed with Chip and Joanna Gaines of HGTV’s “Fixer Upper.” By offering its own food varieties and flavors, it hopes to develop a fan following with Good & Gather.
Stephanie Lundquist, the company’s president of food and beverage, said the items will hit store shelves at a fortuitous time. She said families and even foodies have gotten tired of cooking week after week but still want to have unique and delicious meals.
“They are looking for inspiration,” she said. “They are looking for products and ideas that can help them particularly with the dinnertime rut.”
She said some customers feel cash-strapped, too. That may attract them to the private label.
“One of the things we’re seeing is they want to create dinner moments,” she said. “They want to create special moments because they aren’t able to get out as much, and so those inspiring solutions paired with great value is what they’re looking for.”
Target is one of the retailers that widened the gap with competitors during the pandemic...
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