# Target adds $9 billion in food and beverage sales since 2019, makes grocery a traffic engine

*Mass merchandiser proves category expansion pulls repeat visits, opening shelf slots for emerging physical brands.*

By **Jenny Huang Goodman MPA MSc MHSA, Principal** — The Stash Edge, Hako Shikin LLC.
Published 2026-09-02.

Canonical: https://www.pops4.com/stash/articles/target-2026-09-02t06-2
Subject: Target
Tags: target, grocery expansion, emerging brands, retail distribution, food and beverage, shelf strategy

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Target reported **$9 billion** in incremental Food & Beverage sales since 2019, turning grocery into one of its top traffic drivers, according to Forbes. The mass merchandiser now positions F&B as a primary destination category, not a convenience add-on, and has restructured buying to accommodate emerging brands alongside national names.

The retailer expanded cooler footage, added fresh produce in remodeled stores, and layered in prepared meal programs. It devoted endcap and perimeter real estate to the category and tied grocery into same-day fulfillment through Shipt and Drive Up. The goal was frequency: get a shopper in for milk and eggs, convert the trip into apparel or home goods. The **$9 billion** figure reflects incremental volume, meaning new sales the category generated beyond the base, measured against the 2019 baseline.

The mechanism is destination multiplication. A single-purpose trip becomes multi-category when the shopper already has the basket out. Target's data showed grocery trips occurred two to three times more frequently than general merchandise runs. By owning a credible grocery offer, the retailer compressed the visit interval and lifted basket diversity. The halo effect played both ways: grocery legitimacy brought in households who then discovered owned brands like Good & Gather, while general merchandise loyalty made those same households willing to test Target's food selection instead of defaulting to a traditional grocer.

For a physical-product brand in food, beverage, snacks, or adjacent consumables, this creates a defined opening. Target has publicly committed to emerging brand programs and set aside assortment slots for differentiated SKUs that meet specific guardrails: clean formulation, strong packaging, a clear occasion, and proof of consumer pull through DTC or regional retail. The buyer wants velocity data, not a pitch deck. A brand needs to show it can move **20 to 40 units per store per week** in the first 90 days, the threshold that justifies the slot cost and prevents a reset pull.

The steal works in stages. First, generate proof in a controllable channel. Run a DTC offer with paid social or a TikTok Shop test to gather purchase data and build an email file of **2,000 to 5,000** buyers. Use those names to get into 10 to 30 independent or regional retailers where you can measure true sell-through. Document weekly velocity. Second, approach Target's emerging brand portal or attend a pitch day with that velocity sheet, your margin structure, and your production lead time. The buyer will ask for **50 to 100 stores** on a regional test if the unit economics work. Third, staff the launch. Target expects the brand to fund demo days, provide sell sheets, and track SKU-level performance through Luminate or similar retail data. Bring **$15,000 to $25,000** in trade spend to cover slotting equivalents, demo labor, and in-store POS. If you hit velocity in the test window, the buyer expands doors. If you miss, you lose the slot at the next reset.

The broader pattern is category collision. As mass merchants add grocery credibility, they lower the barrier for differentiated consumable brands to reach scale without traditional broker infrastructure. The playbook that worked in Whole Foods or Sprouts five years ago now applies to a **1,900-door** chain with middle-income frequency. The risk is execution: Target will not nurse a SKU that does not move, and a failed test closes the door for 18 to 24 months.

## The takeaway

Target's **$9B** grocery expansion opens slots for emerging F&B brands with documented velocity and clean unit economics.

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## Publisher

**Hako Shikin LLC** — Virginia Beach, Virginia. Founded 1997. ASI 217876 · DUNS 18-204-6339.
Principal and author: **Jenny Huang Goodman MPA MSc MHSA**.

- Author: https://www.huanggoodman.com/about
- LLM context: https://www.pops4.com/stash/llms.txt
- MCP endpoint, for AI agents: https://mcp.pops4.com/mcp
- Client dashboard: https://dashboard.pops4.com/
- Catalogue: 70,000+ products, 200+ brands