Target expands in-house line to babies and toddlers

Target has had a rough go of it recently. The retailer has faced boycotts from right-wing customers who objected to its Pride merchandise.

Rival Walmart (WMT) - Get Free Report also sells Pride-related merchandise and even featured it prominently in its stores in June during Pride Month, but Target has been painted as a woke company while Walmart hasn't been. That likely goes back to its decision to add gender-neutral bathrooms in all its stores in 2016 while also letting customers use the restroom that fits the gender they identify as, not their birth gender, during the same time period.  

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No matter the reason, Target has seen some impact from the boycotts. CEO Brian Cornell addressed the boycotts without ever specifically using the word during his company's second-quarter earnings call.

"Our team and our business model showed remarkable resilience in the face of multiple headwinds in the external environment. While these headwinds have led to a temporary slowdown in the pace of our business, that doesn't mean our team is standing still. Throughout the company, our team remains focused on staying agile and flexible as we continue to serve our guests and to listen carefully to them in this very dynamic environment," he said.

Target actually saw its profits rise despite its sales falling during the quarter. The CEO basically said that the company will continue to do its best to serve its customers.

"We're fortunate to have a business model that's inherently flexible by design. We offer a balanced, multi-category assortment that's focused on our guests' wants and needs, allowing us to stay relevant in any environment and to quickly pivot as our guests' priorities change," he said.

That latest pivot includes expanding the company's assortment of baby and toddler items under its "Good & Gather" house brand.

Target add Good & Gather babies and toddlers

Target has invested heavily in its owned-and-operated private-label brands. These brands, which can be found in nearly every section of the chain's stores, essentially allow the retailer to offer lower prices by taking the middleman out.

The retailer, for example, sells sports bras and yoga pants under its "All In Motion" brand. And while the items in that line, lack a big name like Nike or lululemon, customers can touch them to get a sense of their quality. Target has done that across many categories, including food where its "Good & Gather" brand has become a staple on its shelves.

Now, the chain has expanded its Goof & Gather line to include food for babies and toddlers. The company calls the new items "an exclusive line of wholesome, affordable items created especially for babies and toddlers. 

Most of the items in the collection will cost under $5.

"All Good & Gather products are made without artificial flavors, synthetic colors, artificial sweeteners, and high fructose corn syrup. We know how much it matters to give little ones great-tasting and affordable food. So it made perfect sense to extend the high-quality deliciousness of Good & Gather to baby and toddler foods," the company shared in a press release.

Target's team of in-house food and culinary scientists created the new line with an eye toward delivering flavors and textures that would appeal to the intended audience.

"The teethers, yogurt bites, bars, and biscuits are designed to make feeding little ones simple and convenient, whether at home or on the go. And they’re all clearly labeled to make it quick and easy to help parents find the right, developmentally appropriate snack for their baby or toddler," Target added.