Target to debut new private grocery brand next month

Aug. 19 (UPI) -- Retailer Target said Monday it will launch a new grocery brand next month.

Launching Sept. 15, the Good & Gather brand will be the largest of Target's private labels, and follows the company's apparel and home goods brands in recent years. By the end of 2020, Target said it will have more than 2,000 products across food and beverage.

Target estimates 75 percent of shoppers buy at least one food item during their visit.

"We've been hard at work [on this] for the last couple years," Stephanie Lundquist, head of food and beverage at Target, told CNBC. "Food and beverage play such an important role for Target's business ... for the Target experience. One of our biggest strengths is the fact that we are a one-stop shop for our guests."

Target's grocery business has had seven consecutive quarters of positive same-store sales growth, Lundquist said.

Analysts said grocery sales make up about 20 percent of the retailer's total business, compared to more than 50 percent at Walmart.

"Grocery is the one spot in their stores they haven't fixed yet," said Edward Jones analyst Brian Yarbrough. "But they are in a much better spot than they were four or five years ago."

Food is generally considered a high-risk item because the margins are lower.