Even before the pandemic, consumers appreciated premium private label products that were appearing with greater variety and depth with premium distinctions like organic and natural. 

An article in FoodNavigator-USA describes how Target plans to expand its private label brand Good & Gather, which launched in September 2019 with a focus on everyday affordability and minimally processed, quality products. Over the past year, the retailer’s store brand has apparently generated more than $1 billion in sales, and the company now plans to nearly double its product line this fall with the addition of 600 new items. The addition of new products will give Good & Gather a presence in an expanded range of categories, such as dairy, coffee, deli, bread, snacks, produce, and seafood. 

Target’s expansion of the Good & Gather brand comes at a time when some CPG manufacturers are working to condense their assortment of offerings. This occurs concurrently with consumer perceptions of private label that are shifting as retailers push further in their offerings of better quality in-store brands and illuminates an area where we will very likely continue to see innovation during and post-COVID-19. 

As retailers build out the narrative and quality attributes of their own brands while continuing to be competitively priced, private label is shedding its image as an “alternative” to national or specialty/natural brands and is gaining an identity as “brands” in their own right. As the economic impacts of the pandemic become more widespread, the combination of affordability and higher quality offered by store brands will continue to bolster the appeal of private labels to consumers.

For more information on retail trends, stay tuned for our upcoming, Food Sourcing in America 2020 report, which will be available this fall. Food Sourcing in America 2020 explores how consumers’ needs and expectations have shifted five-plus months into the pandemic crisis in terms of how they plan and shop for food. Other topics include what role the online channel will take in relation to traditional brick-and-mortar retail channels and the influence of health and wellness aspirations on shopping decisions.

More information: Food Sourcing in America 2020 report