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Target’s food and drink business is booming. In just four years, it’s grown by almost $9 billion.
Now, it’s a $24 billion part of Target’s sales. That’s about 23% of all the money Target made last year.
Brian Cornell, the big boss at Target, thinks there’s still room to grow. He says they have a great mix of famous brands and Target’s own brands that people love.
This combo is helping them win over more shoppers.
The food section is doing well even when other parts of the store aren’t. In the last three months, food sales went up a bit.
This helped Target’s overall sales grow for the first time in over a year.
People are buying more food at Target because they lowered prices on lots of things people buy often.
More people are coming to Target to shop. In just six months, nearly a billion trips were made to Target stores.
That’s 20% more than in 2019. Food is a big reason why. People need to buy food often, so they keep coming back.
Target is always adding new food items. They’re good at selling seasonal stuff.
For summer, they had new snacks and grilling foods. They even had a special Bubly sparkling water flavor that was only at Target. It became super popular fast.
They’re changing things up in the candy aisle too. Now they have more healthy options, like low-sugar treats.
This change made candy sales go up a lot.
Rick Gomez, a top Target leader, says they have a plan to keep growing:
- Keep prices low
- Add new and exciting products
- Make shopping easy
For fall, they’re adding over 150 new Target brand foods and 500 new brand-name items. Think pumpkin spice everything!
They’re even making weird stuff like turkey stuffing flavored chips.
Target’s own food brands are doing great. Good & Gather, which they started in 2019, now makes almost $4 billion in sales.
They also have a fancy but affordable brand called Favorite Day.
Online shopping is helping too. Over 18% of Target’s sales now come from online orders.
People love using Drive Up to pick up their groceries without leaving their car. Same-day delivery is also getting more popular.
Target thinks making shopping quick and easy is key. They know people are busy and want simple solutions.
That’s why they’re focusing on Drive Up and fast delivery.
