Will Target's New Private-Label Grocery Brand Be A Hit?

Target Corporation TGT has announced the launch of Favorite Day, a new private-label grocery brand.

What Happened: Favorite Day will feature more than 700 products divided between two lines: Favorite Day Bakery, offering baked goods including cupcakes and breads, and Favorite Day Gourmet, a collection ice cream, sweets and snacks. The Favorite Day products will arrive in stores and online on April 5.

This is Target’s second private label brand for grocery items. In September 2019, the company launched the Good & Gather line that included dairy, meats and ready-made pasta.

Why This Happened: “We’re thrilled to build on Good & Gather’s success and the strength of Target’s food and beverage business by debuting our new owned brand, Favorite Day,” said Rick Gomez, executive vice president and chief food and beverage officer at Target. “Rooted in guest insights and developed by our talented Target team, Favorite Day is a sweet and savory addition that tastes amazing, makes life’s little moments of indulgence even sweeter and continues to differentiate Target’s owned brand portfolio.”

Private label brands have seen increased popularity among budget-conscious shoppers trying to reign in their grocery bills. According to a data study from Deloitte, sales of private-label brands eclipsed national brand competitors by 33% during the first quarter.

T Price Action: Target's shares closed today at $179.18, up 1.31%.

(Photo courtesy Target)