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Target (TGT) to Launch 'Favorite Day' Food and Beverage Line

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Target Corporation (TGT - Free Report) is set to launch its latest food and beverage line ‘Favorite Day’. This brand will feature above 700 high-quality items covering bakery, snacks, candy, cake-decorating articles, premium ice cream, beverage and mocktails. The new private brand will hit the company’s stores and website on Apr 5, 2021. Customers can also avail ‘Favorite Day’ items through Target’s same-day services, including Order Pickup, Drive Up and Same Day Delivery with Shipt.

The latest brand is built on the success of Target’s flourishing Good & Gather brand, which offers great food to guests. However, the new brand line addition is likely to satisfy guests’ craving for something sweet and savory on special occasions. We note that Target’s food scientists and developers tested quality and taste to maximize guests’ experience. Notably, the brand’s items will be available under $15.

Markedly, the ‘Favorite Day’ label comprises two product lines, Favorite Day Bakery and Favorite Day Gourmet. While the first product line serves guests with a variety of assorted baked goods like cupcakes and breads, the second one is a set of decadent and super-quality sweets such as ice cream and baked goods.

What’s More?

Markedly, Target has been witnessing sturdy market-share gains across all its five core merchandise categories — Apparel, Beauty, Electronics, Essentials and Food & Beverage — owing to strong demand. The company gained approximately $9 billion in market share in fiscal 2020. Consumers have been splurging on food, home office items, video games, décor, domestics and kitchenware as they work, learn, dine and play at home. Stores accounted for more than 95% of the company’s sales in the fourth quarter of fiscal 2020.

Markedly, Target plans to increase the number of fresh, refrigerated and frozen food items to Drive Up and Order Pickup nationwide as well as add adult beverage pickup to 800 more stores in the coming months.

Last September, Target shared plans to expand its Good & Gather brand, including the Signature line featuring 60 premium products with specialty ingredients and flavors. The Good & Gather brand, which debuted in 2019, initially got 650 items in its assortment. The Good & Gather label offers quality food excluding artificial flavors and sweeteners, synthetic colors, and high-fructose corn syrup. Impressively, Target’s Good and Gather brand is gaining momentum and driving its food-and-beverage unit.


 

Encouragingly, this Minneapolis, MN-based company’s shares have surged 21.4% in the past three months versus the industry’s 8.4% rally. Target currently has a Zacks Rank #3 (Hold).

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