Target: Rethinking Grocery with Speed, Private-Label Flare, and Tech-Powered Convenience

Target has quietly emerged as a grocery force—now the fifth-largest digital grocer in the U.S.—thanks to a strategy built on reliability, innovation, and a relentless pursuit of “affordable joy.”

Over the past two years, Target has doubled down on its grocery infrastructure, opening three temperature-controlled distribution centers—and planning a fourth in Colorado—expanding its network to nine facilities nationwide. This investment isn’t about scale alone; it’s about keeping fresh food flowing even during peak times like Sunday afternoons and weekday evenings. “High in-stocks are critical, but peak periods require extra precision—because missing a key item can derail an entire trip,” says Rick Gomez, Chief Commercial Officer.

This enhanced distribution capability undergirds Target’s expansion: its food and beverage sales surged to $6.5 billion in the most recent quarter, representing a growing share of total revenue. Drive-up and same-day delivery—powered by its Shipt capability—have emerged as indispensable conveniences, especially for shoppers balancing busy lives.

Building Supply Chain Muscle for Fresh Food Demand

Private-Label Innovation Meets Everyday Delight

Technology Creating Seamless, Joyful Shopping Moments

Where Innovation Meets Delight

Target’s owned brand strategy is nothing short of prolific. Good & Gather is on the cusp of becoming Target’s first $4 billion store brand, and in 2025 alone, the company plans to launch 600 new items under Good & Gather and Favorite Day. Innovation isn’t limited to volume—it’s about excitement. The retailer is partnering with acclaimed chefs like James Beard winner Ann Kim to create unique food experiences, including a Korean-inspired frozen pizza line available in nearly 1,800 stores. “We’re moving with a sense of urgency to deliver the kind of compelling newness that makes Target a place for discovery, delight and joy,” Gomez shared.

Target isn't just beefing up its product range—it’s leaning into tech to make shopping easier. It’s the first retailer smartly integrated with Apple CarPlay: shoppers can alert their store team via their car when they’re en route to pick up orders. Digital channels now account for 20% of all Target volume, with food and beverage playing a starring role. Drive-up and same-day delivery have been “game changers,” says Carl Sylvester, EVP and Chief Guest Officer, helping fast-track the retailer into the upper ranks of U.S. grocers.

Technology isn’t just customer-facing. Target recently established an Enterprise Acceleration Office—helmed by COO Michael Fiddelke—to improve cross-functional agility and fast-track innovations in AI, inventory management, and omnichannel operations. As CEO Brian Cornell puts it, “We are committed to delivering on our strategic priorities faster,” with this new structure creating the muscle for speed, adaptability, and resilient growth.

Target’s grocery evolution isn’t flashy—it’s smart. By combining deep investment in supply chain infrastructure, private-label innovation, and tech-driven convenience, the retailer is crafting a modern grocery experience. It’s not just selling food—it’s weaving discovery, delight, and reliability into every trip.