The new special label “Favorite Day” will include more than 700 products such as premium ice cream, bakery products, beverage mixers, non-alcoholic cocktails and cake decorations. It will hit store shelves and Target’s website in early April.
Rick Gomez, director of food and drink, said Target does “ favorite day ” activities, but as people eat more at home, they crave confusion and boring cravings.
He said, “Now more than ever, people need a little reward, a little indulgence, and a little luck.”
The groceries are less profitable than the other items Target sells, but they do generate traffic. Target seeks to differentiate itself from the competition and increase profit margins by offering exclusive brands in all product categories, including food and drink. About two years ago, the company launched a grocery brand called Good & Gather and announced plans to phase out two of its own brands, Archer Farms and Simply Balanced. Good & Gather’s sales were approximately $ 2 billion last year.
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Good & Gather is Target’s flagship brand, with more than 2,000 products. It contains no artificial flavors or sweeteners, artificial colors and high fructose corn syrup and includes exclusive updated labels with gourmet pasta, coffee and pizza sauce. On the other hand, Favorite Day is all about delicious things. Target also owns another privately-owned food and beverage brand, Market Pantry, which consists of low-priced staples such as flour and coffee filters.
The pandemic has improved the picture of the target price and the stock price. Because shoppers need to visit the store less often, they prefer larger retailers for the wide variety and online options, such as pier delivery. Some consumers spend less on travel or dinner, so they spend more on products such as interior decoration, sportswear and video game consoles.
Target’s comparable store sales are an important measure of sales in stores that have been open online for at least 13 months, and it grew 19.3% in fiscal 2020 compared to the previous year. Digital sales were up 145% year-on-year. By 2020, food and beverage sales will reach approximately $ 18 billion, which is about 19% of Target’s total revenue of $ 92.4 billion.
The company’s stock price is up nearly 67% over the past year. However, due to concerns that the 2020 performance will be hard to beat, the stock moved away from its 52-week high of $ 199.96 on January 13.
Market share was about $ 9 billion last year, but it declined to disclose the prices of food and drink or specific classes of goods. According to market research firm IRI, the growth rate of supermarkets is faster than the industry and almost all major competitors.
According to data from IRI, total food and beverage sales are up nearly 21% in 2020 compared to the previous year. That’s twice the industry’s growth rate (about 15%) and twice that of Walmart, the country’s largest supermarket, which increased overall food and beverage sales by nearly 9% in the past year.