Written by Evan Sully
Target will be building on its wide range of food and beverage options this month.
The grocery giant is adding hundreds of new items to its Good & Gather line that’s exclusive to the company, Target announced today. Additionally, Target is starting a new premium line called Good & Gather Signature, which will feature nearly 60 Italian sauces, specialty coffees ranging between $2.99 to $9.99 as well as gourmet pizzas and pastas.
This comes as the coronavirus pandemic has caused grocery chains, including Target, to shift their focus to online shopping as more Americans are now purchasing their food from behind their computer screens.
Good and Gather is a private label, or what Target calls an “owned brand.” The brand has generated over $1 billion in sales since it was created one year ago. Overall, Target’s food and beverage private brands have grown more than 30% this year, according to Target CEO Brian Cornell who spoke during the company’s earnings call on August 19.
“Good and Gather brand is clearly resonating with our guests and delivering on our food and beverage vision to enhance the Target experience by making it easy for families to discover the joy of food,” Cornell said.
Markets Insider previously reported that Target’s same-store sales increased by over 24% in the last quarter that ended August 1.
Online consumption has also been working in Target’s favor lately, as digital same-store sales climbed 195% in the quarter.
However, the company might be looking for ways to build off its second-quarter earnings success as uncertainty lingers around the US economy and the national response to the COVID-19 outbreak.
“There’s just so much uncertainty today,” Cornell said while appearing on CNBC’s Squawk Box on August 19. “What’s going to happen with the pandemic, what’s happening with flu season — as we go into the fall, questions about the economy and the new stimulus, do we go back to school and back to college.”
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