On Monday Target announced that as from next month it will launch a private food label in an attempt to improve grocery sales.

Target adding private food label

The retailer indicated that starting September 15, around 650 products will be available on the shelves of the store under the brand “Good & Gather.” The store expected to expand the products they offer to around 2,000 by the end of next year.

The goods that shall be available under the “Good & Gather” brand include eggs, milk, meat, and pasta. The retailer has indicated that the products that will be on their shelves will be free of synthetic colors, artificial flavors, and high fructose corn syrup or artificial sweeteners.

The Minneapolis, Minnesota retails is already doing away with the Archer Farms and Simply Balanced house food brands and it is also working in reducing of its Market pantry line. This expected launch builds on the company’s food and beverages business drive that includes seven consecutive quarters of sales growth at its various retail outlets. The company has also registered market share growth for six consecutive quarters with gains in almost all categories of food.

Target seeks to become a one-stop-shop

Target’s head of food and beverage Stephanie Lundquist stated that in the past couple of years they have been working hard to transform the businesses especially the food and beverage segment which is vital for the company. Stephanie added that Target’s strong point is that it is a one-stop-shop for all the customer needs.

Analysts have however warned that the move by Target to offer fresh foods is bland and an afterthought. This is so because not many shoppers will pick Target as their destination for grocery shopping when they can opt for Walmart.

Edward Jones analyst Brian Yarbrough indicates that groceries is the only spot that Target has not fixed yet although they are in a better position than they were five years back. The potential is there as more people are increasingly buying private-label products at retail stores.