Target has spent years building out its fashion and homewares departments, turning itself into a go-to spot for the trendy consumer. But there’s one area where it’s struggled to get a foothold: grocery.
Unlike Walmart, its nearest competitor in the big-box space, grocery accounts for a relatively small share of Target’s overall sales.
Food and drink make up less than one-quarter of the Minneapolis-based retailer’s revenues, but nearly two-thirds of Walmart’s, according to data reported by Reuters.
Recently, though, Target has been on a mission to make grocery a larger part of its mix to compete more effectively with retailers like Walmart and Kroger. In an August 2026 investor call, CMO Cara Sylvester talked about the company’s ambitions to “make food a destination, not simply a category a guest shop while they’re in our stores, but a reason they choose to come to Target.”
Its latest launch is a clear example of how Target is trying to establish itself as that grocery destination.
The Wild Alaskan Company launches at Target
In September, the Wild Alaskan Company, a premium seafood brand, announced its partnership with Target.
The partnership is particularly notable because the Wild Alaskan Company isn’t a traditional grocery brand. Founded in 2017, it was initially built on a direct-to-consumer subscription model.
Now, for the first time, five of the brand’s best-selling products will hit shelves across the country: Pink Salmon, Sockeye Salmon with Lemon & Herb Butter, Wild Alaska Pollock Fillets, Wild Alaska Pollock Quick Cuts, and Sablefish.
All of the products included in the launch are 100% wild-caught, sustainably harvested, and frozen at peak freshness to preserve quality and flavor.
“High-quality seafood isn’t just for special occasions — it should be something people can enjoy at home any day of the week,” Wild Alaskan Company CEO Aaron Kallenberg said in a statement.
“This partnership gives us another powerful way to make premium, wild-caught seafood more accessible as an everyday protein.”
In September, Target announced a partnership with the Wild Alaskan Company, a move that will help the retailer further differentiate its grocery assortment as it seeks to compete with companies like Walmart.Bloomberg / Getty Images
Target is trying to carve out its own grocery niche
In the second quarter of the 2026 fiscal year, Target’s food and beverage sales increased by 7%, according to the company’s earnings report.
While the increase is promising, some experts think the retailer should place even more emphasis on grocery’s growth.
“It’s mission-critical,” Sarah Henry, managing director at Target shareholder Logan Capital Management, told Reuters.
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Grocery purchases bring shoppers through the doors more regularly than discretionary categories like fashion and homewares, giving retailers like Target a greater opportunity to capture a larger share of consumer spending.
This is especially important in an economic climate where shoppers are watching every dollar.
Still, it’s unlikely that Target will be able to directly compete with retailers like Walmart when it comes to grocery spending.
Walmart has spent decades establishing itself as the budget-friendly option for basics like milk, bread, and eggs. Its enormous grocery footprint and extensive private-label assortment make it difficult for Target to compete head-on.
Instead of attempting to establish itself as a replacement to Walmart, Target seems to be attempting to carve out a niche as the place to go for curated, trend-focused, niche products that shoppers can’t find just anywhere.
It’s a strategy that could give Target an opening.
“Winning [in grocery] requires a differentiated offering,” McKinsey & Company’s 2026 State of Grocery in North America report says. “Consumers are no longer shopping one way for all needs but splitting trips across value stock-ups, fresh and prepared-food occasions, convenience-led delivery, wellness-driven baskets, and fill-in missions.”
In other words, shoppers aren’t necessarily looking for one retailer to handle all of their grocery needs.
That could give Target an opportunity to win a larger share of the grocery trip without trying to replicate Walmart’s massive food business.
If partnerships like Wild Alaskan can give shoppers a reason to make Target part of their grocery routine, the retailer could see increased sales in its food and beverage categories.
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