Target makes a change that might scare Walmart, Costco

The retailer is looking to attract more customers.

Mar 8, 2025 - 17:37

Target makes a change that might scare Walmart, Costco

If somebody asked you how much a gallon of milk or a carton of eggs costs, you'd probably be able to answer the question pretty easily.

And, chances are, your answer might be a lot different than it was a few years ago.

At the very end of 2024, a gallon of milk in the U.S. cost $4.101 on average, according to the Bureau of Labor Statistics.

A dozen eggs cost $4.95 around that same period of time.

Which means that the average American is paying double digits for just two key kitchen staples most of us keep stocked in our fridges every week.

And that's just an average. Plenty of folks are ostensibly paying more, particularly if they live in areas with a higher cost of goods or are paying for organic, regeneratively farmed, or pasture-raised products.

Fresh bananas and other produce for sale in the grocery section inside a Target store.
Bloomberg/Getty Images

Food is getting more expensive

According to the most recent CPI report, inflation is slightly hotter than anticipated.

The annual rate of inflation stands at 3.0%, higher than the 2.9% most analysts were expecting.

One key good that most of us all agree feels more expensive is food. And we're not imagining things.

According to the CPI, the cost of food at home — which largely amounts to the groceries we buy — ticked up by 0.5% on the month.

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The index for food at home rose 1.9 percent over the last 12 months. The meats, poultry, fish, and eggs index rose 6.1 percent over the last 12 months as the eggs index increased 53.0 percent," the CPI found.

"The index for nonalcoholic beverages increased 2.2 percent over the same period, while the index for other food at home rose 0.8 percent and the index for dairy and related products increased 1.2 percent. The cereals and bakery products index increased 0.4 percent over the year and the fruits and vegetables index rose 0.3 percent over the same period."

Target adds more key products

One retailer attempting to combat the pinch of high prices is Target TGT.

The Minneapolis-based retailer nearly dominates the owned-brands category; several of its in-house labels are billion-dollar brands, including some of its pantry brands, like Good & Gather.

And now, Target is announcing it will add about 600 new items to its Good & Gather and Favorite Day labels.

The move is part of Target's larger strategy to bulk up its owned brands, which are popular among Target customers for quality and price accessibility. Target plans to bring in about 2,000 new items — 90% of which will be under $20 — in the near term.

Target also indicated ambitious plans to increase its revenue by $15 billion by 2030.

Some of the new grocery items include Korean-inspired dishes and frozen pizzas.

Walmart has made similar moves to bulk up its in-house labels, telling customers to expect more quality as it grows its new Bettergoods in-house brand.

And Costco's Kirkland label is one of the largest consumer goods labels in the U.S. — it brings in more revenue than Coca-Cola and Nike, particularly because of its cost savings opportunities.