If you want to sell more groceries, stock food that people want to buy. That’s logical enough, and it’s Target’s new strategy to draw younger customers to its stores to buy food…and pick up everything else they need along the way to the checkout. Now the company is looking for an experienced grocery executive to help them ride the Greek yogurt and granola bar train to being cool again.
Do you remember when Target was considered the classier alternative to Walmart and Kmart? Target does, and they would like consumers to have that perception again. They’ll get there through their food offerings. The Wall Street Journal learned that Target is looking to stock items like good quality coffee, bottled craft beers, Greek yogurt, and classier snacks to draw some sweet Millennial spending.
Food is about 20% of Target’s sales. The chain hoped that expanding grocery sections in many stores would mean that customers would pick up more profitable items as long as they were in the store. That investment didn’t pay off as planned, so Target did some research to find out why. They learned that most customers weren’t interested in the brands or selection that Target sells. That means revamping the selection for the customers that the chain wants: fewer Oreos, more local craft beers.
Target Revamps Groceries for Millennials [Wall Street Journal]
by Laura Northrup via Consumerist
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