U.S.: Target makes biggest private-label bet on grocery

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U.S.: Target makes biggest private-label bet on grocery

U.S. supermarket chain Target is launching what it says will be its biggest ever own-brand, and it's for its growing grocery business.

The company entered the grocery space a little more than a decade ago, quickly turning it into a US$15bn business, according to Stephanie Lundquist, executive vice president of food and beverage at Target.

But Lundquist - speaking at Groceryshop​ in Las Vegas - said that the rapid expansion into fresh food and beverage left the grocery department without much of a point of view.

In food, Target was "simply functional or transactional," said Lundquist. But she said that “food and beverage should be part of the magic Target experience.”

She explained that food and beverage should reflect the same type of innovation and inspiration that is evident across the retailer’s other categories.
That is where Target's new private grocery brand - Good & Gather - comes in. When fully rolled out, will be Target’s largest owned brand to date.

“In building Good & Gather we knew we had to start with a blank slate,” said Lundquist.

The first phase of the rollout, which includes 650 products, began last week. By the end of next year, it is expected to encompass 2,000 items.

Lundquist explained that the brand's launch comes amid an increasingly important role being played by its grocery division, which has seen right straight quarters of sales growth.

“Food and beverage is playing an outsized role in our success,” Lundquist said. She explained that the company had found that new private labels tend to lift entire categories.


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