Target added 3,000 new food and beverage items in Q1 2026, with its merchandising chief telling investors the goal is to turn grocery into a reason shoppers choose Target over other options. The move comes on the heels of its strongest quarter in over a year, with plans to accelerate food and beverage newness by 50% in Q2. That's an aggressive ramp by any standard.
Target has historically been an underperformer in fresh grocery compared to Walmart and Kroger, but this level of investment signals a real strategic shift. More SKUs means more shelf competition, more supplier opportunities, and more pressure on existing category incumbents to defend space. Fresh and produce adjacencies — dips, guac, snackable items — could be prime targets for expansion.
For produce suppliers and fresh food brands, Target's grocery push is one of the bigger channel development stories of 2026. If you're not already in conversations with their buyers, now is the time.