Target is launching a new grocery brand as it fights for market share
Target is making its largest foray into a private food label as it tries to energize grocery sales.
On Sept. 15, 650 products will appear on store shelves under the new Good & Gather brand. That is set to expand to 2,000 products by late next year.
Target is phasing out its house food brands, called Archer Farms and Simply Balanced, and reducing its Market Pantry line. The company expects Good & Gather to be a multibillion-dollar business by the end of next year.
The goods sold under the new brand include pastas, meat, milk, eggs and prepared meals. Target said Monday that the products will not have artificial flavors, synthetic colors, artificial sweeteners or high fructose corn syrup.
The launch builds on Target’s food and beverage business momentum, which includes seven straight quarters of sales growth at established stores and six straight quarters of market-share growth with gains across almost every category of food.
It’s also part of Target’s broader effort to expand in-house brands, such as the children’s clothing label Cat & Jack and men’s clothing brand Goodfellow & Co. By the end of 2019, Target will have more than 25 exclusive brands.
Industry analysts say Target has to become more competitive in the grocery aisles.
“The new label is a major step forward that introduces excitement and interest to the food department,” said Neil Saunders, managing director of GlobalData Retail. “Good & Gather both creates a more cohesive and compelling food offering as well as being a platform for the launch of some new and interesting lines, which should entice consumers.”
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