Dive Brief:
- Target plans to add 600 items to its Good & Gather and Favorite Day grocery brands in 2025, Target Chief Commercial Officer Rick Gomez told investors during the company’s fourth-quarter earnings call Tuesday.
- Target also announced Good & Gather Collabs, items under the private label line co-created with chefs and tastemakers. The first round of items includes frozen pizzas and appetizers from James Beard Award-winning chef and restauranteur Ann Kim.
- The moves are part of Target’s newly announced strategic plan to increase sales by more than $15 billion by 2030.
Dive Insight:
The grocery additions are part of Target’s plan to add 2,000 new products to its overall assortment, of which 90% will be priced under $20. The push to broaden its assortment comes as the retailer reported mixed fourth-quarter results Tuesday, with net sales down 3% and operating income down 21%. The retailer’s comparable-store sales saw a slight 1.5% uptick for the quarter.
“We’re moving with a sense of urgency to deliver the kind of compelling newness that makes Target a place for discovery, delight and joy,” Gomez told investors on the call.
For Good & Gather Collabs, Kim has made seven items with flavors representing her Korean heritage, including four frozen pizzas. Those items will start at just under $7 and arrive at nearly 1,800 stores across the U.S. next week, Gomez said.
“This is another example of delivering everyday discovery and delight in our grocery aisles, a big step forward in our journey to make Target a retailer that doesn’t just sell food but celebrates food,” Gomez said on the earnings call.
In recent years, Target has significantly expanded its grocery assortment, including private label. Good & Gather is close to becoming Target's first $4 billion store brand, Gomez said. The brand currently has over 2,500 items. Earlier this year, Target announced plans to add more than 2,000 wellness-focused items, including Tom Holland’s non-alcoholic beer brand and 250 new additions to Good & Gather.
