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CNBC reports that Target is rolling out a new private label grocery brand - “Good & Gather,” which by the end of next year should consist of some 2,000 SKUs, including “organic pizza crusts, milk and eggs, hazelnut and peanut butter spreads, frozen veggies, salad mixes and pastas.”

The story notes that Target has been on a private label and investment tear: “The Good & Gather launch follows a period of heavy investing by Target in other parts of the store and in its own labels. The company will end the year with more than 25 new owned-and-exclusive brands, like A New Day for women’s clothes, Project 62 for furniture and Hearth & Hand with Magnolia for home goods. It started making the investments in 2017 as part of its bid to keep shoppers coming to Target for things they can’t find elsewhere except for Amazon. It also has helped pull Target out of a sales slump.”

Target is projecting that Good & Gather will evolve into a multibillion dollar brand.

According to CNBC, “As part of the Good & Gather launch, Target will also be phasing out two food brands, Archer Farms and Simply Balanced. It will also scale down the number of items it sells under Market Pantry, which makes basic goods like sandwich breads, cooking oils, sauces and canned vegetables. The addition of Good & Gather to Target stores also means it will slightly increase the amount of shelf space it devotes to private-label products versus national ones. As a result, Target’s penetration of store-owned brands in the grocery category will climb.”
KC's View:
This certainly is part of the national trend toward stronger own-label offerings, and Target is smart of try to create a differential advantage by having exclusive products. I’m still not sure why it hasn’t outsourced its generally unimpressive grocery departments to a more accomplished supermarket chain, in the same way that it outsourced HBC to CVS. But for the moment, this seems to be the direction … and it strikes me as an intelligent move.