Target is launching its own food brand as it doubles down on grocery and takes on Walmart

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Target is launching its own food brand as it doubles down on grocery and takes on Walmart

Target

Courtesy of Target

Target's new food collection.

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  • Target is launching a new own-brand grocery line called Good & Gather.
  • The new collection, which launches on September 15 with 650 products, will eventually stretch to 2,000 total by the end of next year and include a mix of staples such as coffee, milk, and eggs along with kids-focused, organic, and premium grocery items.
  • While Target does already offer groceries, it's known for having a somewhat "lackluster" collection. This new collection could help it to better compete with Walmart.
  • Visit Business Insider's homepage for more stories.

Target, the master of private label brands, is launching a new food brand, Good & Gather.

The new collection, which launches on September 15 with 650 products, will eventually stretch to 2,000 total by the end of next year. It will include a mix of staples such as coffee, milk, and eggs along with kids-focused, organic, and premium grocery items.

Target has not yet confirmed how much these products will cost but described it as an "affordable" collection in a press release on Monday; a spokesperson for Target did not immediately respond to Business Insider. It also said it will be phasing out its Archer Farms and Simply Balanced brands and reducing its Market Pantry line.

In any case, it's hoping to appeal to a more health-conscious consumer; the new products are made without artificial flavors, synthetic colors, artificial sweeteners or high fructose corn syrup.

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The new brand has been a year in the making, according to the press release. And while Target does already offer groceries, it's known for having a somewhat "lackluster" collection compared to its rivals, especially lacking on fresh produce. With Good & Gather, it would now be in a better position to take on the US grocery leaders such as Walmart.

Read more: We went shopping at Walmart and Target to see which was better for groceries, and there was a clear winner

Target is known for its private-label brands and has doubled down on this area of the business. It now has 40 in total including kidswear label Cat & Jack and homeware brand Project 62.

These products are a way to differentiate Target and boost profit margins while still being able to offer customers affordable prices. They are a big asset in driving traffic to stores, and given that they are cheaper than other well-known brands, customers are likely to buy more.

The strategy seems to be working - in just over a year, sales at its kids' apparel brand, Cat & Jack, surpassed $2 billion. Overall, private label now makes up around one-third of its total sales, according to Morningstar.

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