Inside Target’s Good & Gather launch

Date : 16 October 2019

We recently visited Target’s stores to review the launch of its new private label range, Good & Gather.

The first of 2,000 products landing in-store

Target has started to roll-out its new private label food range, Good & Gather, with the first of 650 products introduced into its stores. The roll-out will continue over the next few months, before being ramped up to over 2,000 products by late next year. Initial categories include juice boxes, snacks and chips, spreads, frozen fruits, deli meats, cheese, milk, eggs and pre-packed produce.

Source: IGD Research

Appealing to parents

Many of the initial products are aimed towards kids’ lunchboxes. This helps parents to draw on the range to provide healthier on-the-go options. Winning the loyalty of this target customer is essential to the long-term success of the brand.

Source: IGD Research

Simplifying the offer

The introduction will see the existing Archer Farms and Simply Balanced ranges phased out, with the number of products under the Market Pantry brand scaled back. This significantly simplifies the food offer for Target’s customers given a degree of overlap between the previous ranges.

Source: IGD Research, Target

Communicating the change

With many of the products being transitioned from existing brands, Target is communicating the change at the shelf edge.

Source: IGD Research

Source: IGD Research

Contemporary design

The range has a strong visual identity. The look and feel is contemporary with good use of solid colour and product imagery. Text use is minimised, ensuring only the most vital information is featured on front-of-pack.

Source: IGD Research

Source: IGD Research

Calling out organic

The retailer is making a stronger effort to highlight organic products. The transition of Simply Balanced organic tortilla chips, for example, emphasises its organic credentials much more boldly.

 

Source: IGD Research

Clean products

The range’s clean credentials are also featured prominently on-pack. Products are made without artificial flavors and sweeteners, synthetic colors and high fructose corn syrup. This leans into consumers’ interests around health, wellness and transparency, trends which have been fueling the growth of many startup food brands.

Source: IGD Research

Building trust

To drive trial and build customer trust, Target is offering a money-back guarantee across the entire range. This is communicated extensively throughout the food department.

Source: IGD Research

Our view

The launch of this range indicates a serious attempt to get after shoppers’ food spend. This includes both store-based customers and the online opportunity. Target has the potential to take a much bigger share in online grocery, given the infrastructure and fulfillment options it has developed. Although only a small number of products have been introduced to date, it is already having a strong visual impact in-store. Phasing out Simply Balanced and Archer Farms helps to create scale and consistency in the offer.

Winning with new and existing customers

Execution to date looks great. Target’s success in launching 20 non-food brands over the last two years highlights that it has the capabilities to win in this area. Its emphasis on clean ingredients, healthier options and organic items taps into several key shopper trends. We foresee the brand being successful for the retailer, driving higher spend from existing food customers and drawing new customers into the department.

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Stewart Samuel

Program Director IGD Services Canada

Having launched a turnaround plan in 2017, centred on its stores, supply chain and private label capabilities, we look at how Target is successfully navigating its transformation and the outlook to 2023.

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