Target Corporation (NYSE: TGT) is looking at every possible way to increase sales and discount store market share this year. Part of that plan will soon be to sell fresh food and products in up to 100 of its normal merchandise stores to supplant sales at its merchandise/grocery SuperTarget locations that already exist.This is a good thing for the retailer. Wal-Mart Stores, Inc. (NYSE: WMT) already has its Neighborhood Market grocery-only locations to assist its general merchandise and Wal-Mart Supercenter locations. so Target is treading into the same territory here. Although Target is not listing which normal locations will feature the food and produce offerings, the company did say that "Based on continued favorable results from these stores, we would intend to incorporate these expanded food offerings into a substantial portion of our chain over the next three years."
Target used its home state of Minnesota to test an initial three stores, which all showed favorable results. Although this could be seen as Target just copying rival Wal-Mart's strategy (in late fashion, I might add), it's now a matter of survival to try and find more success with the "all under one roof" approach that has been so successful for Wal-Mart Supercenters as well as SuperTarget locations. Target is just further behind in aggregating discount merchandise and food in a majority of its stores. Now, more than ever, it needs those incremental sales.
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Reader Comments (Page 1 of 1)
5-13-2009 @ 9:56PM
draw984 said...
I previously commented Target needed to become a one-stop shopping outlet closely as possible. I recommended they consider acquiring Rite-Aide stores or establish a pharmacy. This food idea is a step in the right direction. People buy food everyday. Congrats, Target.
5-14-2009 @ 12:31PM
Todd said...
Don't all Targets have a pharmacy already?? I've used them for my drugs for a while. Wife got her flu shot there too.
5-15-2009 @ 12:30PM
tadyer2336 said...
IF Target wants to get more people in and spending more money. Then they should STOP buying everything from Super Value wholesale / distributor.
They had a ## % increase in profits.
this GREED is passed on to other retailers.
most of the cost increases from them are contrived so they justify gouging their customers.
If Target would buy more in direct shipments from the companies like kraft or green giant ,etc. to their own warehouses . they could save a bundle and pass half to the customers and keep an additional half to boost their bottom line,
lets stop blaming all these increases on oil and gas prices. the greed of 3 years took care of those costs and have stabelized long since.
SO TARGET ! GET ON THE STICK AND BE THE LEADER IN BRINGING THE PRICES DOWN SO YOUR CUSTOMERS CAN AFFORD TO EAT>>