Over the past year and a half, Target (TGT) has been struggling with weak sales after it faced a massive boycott over its pride collection during the summer of 2023.
In addition, the retailer is currently facing the challenge of attracting frugal customers, who are feeling the brunt of inflation and higher costs of living, back into its stores.
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In the company’s third-quarter earnings report for 2024, Target revealed that its comparable sales only increased by a minor 0.3% year-over-year during Q3.
Related: Target’s latest attempt to win back shoppers faces criticism
Traffic in its stores also grew by about 2% year over year; however, the amount of money customers spend per purchase shrunk by 2% compared to the same time period last year.
“Consumers tell us their budgets remain stretched, and they're shopping carefully as they work to overcome the cumulative impact of multiple years of price inflation,” said Target CEO Brian Cornell during an earnings call in November.
Target expands a popular group of products amid low sales
As Target battles to win back shoppers, it has decided to embrace a blossoming consumer trend with the help of a major celebrity, which could provide a much-needed lifeline to its low sales.
The retailer has announced that it will start selling the non-alcoholic beer brand Bero, founded by actor Tom Holland, in about 1,400 of its stores by the end of the week.
Related: How to invest in the growing non-alcoholic beer market
Holland recently revealed in an interview with Men's Health that he started Bero after struggling with sobriety. He stated that during his first year of sobriety, he looked to non-alcoholic beers to help him feel more included in social situations where drinking is involved.
“My boys? Big drinkers. Golf. Pubs. Lads’ holidays. And not one of them ever chastised me for not having a drink at the bar,” said Holland in the interview with Men's Health.
Target customers will be able to purchase Bero’s single flavor 6-packs for $11.99 and a Target-exclusive variety 12-pack for $21.99.
"Non-alcoholic beverage has been a growth category at Target for five years now and I can't wait for shoppers to try the newest addition to our assortment: Tom Holland's Bero," said John Conlin, senior vice president of merchandising, food and beverage at Target in a new press release.
More consumers are avoiding alcohol
The move from Target comes as many consumers have been participating in “Dry January.” This viral trend encourages people to abstain from alcohol during the month of January so that they can experience health benefits such as better sleep, higher energy levels and weight loss.
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Before the trend took off this year, many Americans had already developed more of a cautious attitude toward alcohol consumption.
According to a recent survey from Gallup, 45% of Americans say that drinking one or two alcoholic beverages a day is harmful to one’s health. This is a six-percentage-point increase compared to survey results from last year and a 17-point increase compared to responses in 2018.
The shift in attitude toward drinking alcohol has appeared to negatively impact alcohol sales in the U.S. as beer, wine and spirit sales declined in 2024.
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The demand for non-alcoholic beverages may very well skyrocket soon, especially after U.S. Surgeon General Dr. Vivek Murthy released an advisory last week that outlines a direct link between alcohol consumption and increased cancer risk.
He lists the esophagus, breast, liver, mouth, throat, larynx, colon, and rectum as parts of the human body that are at risk for developing cancer from alcohol consumption.
“Alcohol is a well-established, preventable cause of cancer responsible for about 100,000 cases of cancer and 20,000 cancer deaths annually in the United States – greater than the 13,500 alcohol-associated traffic crash fatalities per year in the U.S. – yet the majority of Americans are unaware of this risk,” said Dr. Murthy in a press release that announced the advisory.
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