MINNEAPOLIS, MN - Target is taking a fresh look at its grocery aisles, putting more space behind fresh produce and trend-driven food and beverage products as the retailer works to strengthen its position in the grocery sector.
According to The Seattle Times, citing Bloomberg reporting, Target has been overhauling its grocery departments since the spring, increasing the size of the section by more than 20 percent in nearly 150 remodeled stores and more than 50 percent in 300 new locations. The additional space is being directed toward fresh produce and trending products, while some slower-moving pantry staples are being scaled back.
The effort comes as Target looks to make food a stronger reason for shoppers to visit its stores. More than half of Target shoppers purchase groceries during their trips, while food and beverage accounts for less than 25 percent of company revenue. The segment has grown by more than $9 billion since 2019.
Target has added roughly 4,600 food items so far this year, along with more than 60 brands during the second quarter. The retailer has also increased space for Asian food products by approximately 75 percent following more than 25 percent sales growth for the category over the past year.
“Food and beverage is a powerful opportunity to make life easier for busy families and drive our business forward,” John Conlin, Senior Vice President of Food and Beverage Merchandising, said in a statement cited by the report. Conlin added that the retailer's grocery assortment is deepening shopper loyalty and driving more frequent trips.
Rather than attempting to match larger grocery competitors across every category, Target is emphasizing a more curated assortment of national, emerging, and store brands designed around evolving tastes and wellness interests. The retailer hopes the approach can create more of the “treasure hunt” experience that has historically characterized other parts of its business.
The grocery revamp is expected to play a significant role in Target's broader turnaround strategy, with the retailer estimating the effort could generate more than $2 billion in growth over the next several years.
As Target continues reshaping its food business, fresh produce is set to gain more room alongside emerging brands and specialty products as the retailer works to give shoppers more reasons to make grocery part of their Target run.
AndNowUKnow will continue tracking grocery strategy as the retailer brings its refreshed assortment to more stores.
