What: Target has grown its food and beverage business to USD 24 billion in sales, adding more than USD 8 billion since 2019 through a mix of digital growth, private label development, and strategic changes in assortment and labour.

Why it is important: Target's success in the grocery sector highlights how traditional retailers can revamp underperforming categories by focusing on consumer needs, e-commerce integration, and private label innovation, demonstrating a significant shift in its market position.

Target has successfully transformed its grocery segment into a USD 24 billion business, growing sales by over USD 8 billion since 2019. This growth has been driven by a combination of e-commerce expansion, strategic investments in private-label products like Good & Gather, and targeted leadership changes. The company’s approach to integrating national brands with exclusive partnerships and private labels has resonated with consumers, with food and beverage items now featuring in more than 55% of customer baskets. As Target continues to innovate and adapt, it positions itself for sustained growth in the highly competitive grocery market.

Target's grocery expansion: A USD 24 billion success