Target’s food and beverage sales have grown by nearly $9 billion over the past four years, making it a $24 billion business — and there’s still room for growth, according to Brian Cornell, the company’s chairman and CEO. As Food Business News reports, Cornell discussed the possibilities during an Aug. 21 analyst conference call on second-quarter fiscal 2024 earnings.

“We believe we have significant growth opportunities in this space, led by the unique combination of great national brand partnerships and some really strong private brands that connect with the consumer,” Cornell said. “So we believe we’re still in the early stages of building our grocery business.”

In May, Target announced plans to lower everyday prices on thousands of popular products, benefiting the food and beverage category.

“In terms of our assortment frequency, both our food and beverage and staples categories saw traffic growth in the quarter as consumers respond to our offerings in an environment where they place value,” he said. “Over the summer, we reduced prices on approximately 5,000 frequently purchased items in many markets and saw acceleration in both unit and dollar sales in those business areas.”

Chief Commercial Officer Rick Gomez said the company will continue to emphasize affordability in the next quarter while introducing “a lot of new products,” including those that leverage popular seasonal flavors. “I’m talking pumpkin spice, apple, pecan pie,” Gomez said during the call. “That will continue to drive growth.”

Food and beverages accounted for about 23% — or nearly $24 billion — of Target’s revenue in fiscal 2023.