Target launches grocery brand Favorites Day focused on snacking and fun

Target is launching a food and beverage brand focused on snacking and fun . The new private label , Favorites Day, will include more than 700 products such as premium ice cream , baked goods , drink mixers , mocktails and cake decorating supplies . It will hit store shelves and Target's website in early April.

Target has always had a Favorites Day campaign in the works, but it has taken on increased relevance as people eat more meals at home and crave small ways to distract from stressful and monotonous times, said Rick Gomez, chief food and beverage officer .

"Now more than ever, people need a little bit of reward, a little bit of indulgence, a little bit of joy," he said.

Grocery items don’t make as much profit as other items Target sells, but they drive traffic. Target has tried to differentiate itself from competitors and boost profits by introducing exclusive brands in various categories, including food and beverages.

About two years ago, the company launched a grocery brand called Good & Gather, which had sales of about $2 billion last year, and announced plans to phase out two of its own brands, Archer Farms and Simply Balanced.

Good & Gather is Target's flagship brand with more than 2,000 products . Favorite Day, on the other hand, is centered around snacks. Target also has another private-label food and beverage brand, Market Pantry, which consists of low-priced staples like flour and coffee filters.

The pandemic has boosted Target's profile and stock price. As shoppers avoid traveling, they are gravitating toward big - box retailers for their wider assortment and online options like curbside pickup. Some consumers are spending more of their dollars on items like home decor , fitness apparel and video game consoles because they're spending less on traveling or dining out.

Target's comparable sales, a key metric that tracks online sales at stores open online for at least 13 months, increased 19.3% in fiscal 2020 compared with the previous year. Digital sales grew 145% year-over-year . In 2020, food and beverage accounted for about $18 billion, or about 19%, of Target's $92.4 billion in total sales .

Target gained about $9 billion in market share last year, but declined to say how much was in food and beverage or specific merchandise categories. The retailer’s growth in grocery has outpaced the industry and nearly all of its major competitors, according to market research firm IRI.

Target’s total food and beverage sales grew nearly 21% in 2020 compared with the previous year, according to IRI. That outpaced the industry-wide growth rate of about 15% and was double that of Walmart, the country’s largest grocer , which saw total food and beverage sales grow about 9% for the year.

Target

North America

groceries