Target’s food and beverage business has experienced substantial growth, with sales surging by over $8 billion since 2019, reaching $24 billion. This growth is largely driven by a focus on assortment, e-commerce, and labor changes. Target’s grocery category is now included in over 55% of shopper baskets, underscoring its role in driving store visits.
Digital sales have also seen significant expansion, with online grocery sales growing more than tenfold since 2019. The introduction of same-day e-commerce services and an emphasis on private label products have been key factors in this success. Target’s private label brands, such as Good & Gather and Favorite Day, have become significant contributors, with Good & Gather alone generating nearly $4 billion annually.
Additionally, Target’s recent price cuts on thousands of grocery and household items, along with leadership changes in its food and beverage division, highlight the retailer’s commitment to maintaining momentum in this sector. Seasonal private label offerings, including Halloween gummies and apple-themed fall treats, further demonstrate Target’s strategic approach to capturing consumer interest and growing its grocery business.
