Target’s food and beverage sales have increased nearly $9 billion over the past four years to become a $24 billion business — and according to Brian Cornell, the company’s chairman and chief executive officer, there is still room to grow. As reported by Food Business News, Cornell discussed the possibilities during an Aug. 21 analyst call regarding fiscal 2024 second-quarter results.
“We think we have significant opportunity for growth in that space, led by the unique combination of great national-brand partnerships and some really strong owned brands that are connected with the consumer,” Cornell said. “So we think we’re still in the early days of building out our food business.”
In May, Target announced plans to lower the everyday price of thousands of popular products, which benefited the food and beverage category.
“On the frequency side of our assortment, both our food and beverage and essential categories saw traffic growth in the quarter, as consumers are responding to our offerings in an environment where they are focused on value,” he said. “Over the summer, we reduced our prices on about 5,000 frequently purchased items in many markets, and we saw an acceleration in both our unit and dollar sales trends in these businesses.”
According to chief commercial officer, Rick Gomez, the company will continue to emphasize affordability in the next quarter, while also introducing “a ton of new products,” including those that leverage well-loved seasonal flavors. “I’m talking about pumpkin spice, apple, pecan pie,” Gomez said during the call. “That will continue to fuel growth.”
Food and beverage represented about 23% — or nearly $24 billion — of Target’s fiscal 2023 sales.
