Why Target is struggling with its grocery business

By Sumit Modi
Share

Target is struggling in its attempt to be an all-purpose store for customers, as the grocery arm of the business continues to suffer.

Thus far, the company has been unable to sell perishable items such as vegetables and meat quickly enough for it to make good business sense, instead wasting huge amounts of food.

Impulse purchases are a highly profitable part of the average grocery shop for businesses, but Target is failing to capture the desired clientele.

Millennials are the most susceptible audience for impulse buying, but as Target is neither cheaper than many of its competitors nor of a high enough quality to justify a higher price, it lacks appeal.

Few shoppers view the retail giant as a feasible location to perform their weekly shop, only infrequently picking up essentials alongside their other purchases. 

As reported by Wall Street Journal, a spokesperson for Target said: “We know we need to operate the food business differently and it’s a much bigger task than simply reconfiguring part of the store.

"We are still in the early stages of our food repositioning effort,” which “includes evaluating how we get fresher foods to our guests faster and finding ways to better leverage our distribution centers and partners.”

 

Follow @BizReviewUSA and @NellWalkerMG

Read the August issue of Business Review USA & Canada here

Share

Featured Articles

EV Slowdown Would Be ‘Big Trap’, Warns Stellantis CEO

Stellantis CEO Carlos Tavares has described prolonging the transition to EVs as a ‘big trap’ for car manufacturers, as Europe battles with slowing EV sales

Best US Cities To Grow Your Multinational Company

You’re ready to grow your business, expand to other regions and take on new clients. To compete with some of the biggest, most successful firms out there

Why Germany’s economy is sliding into recession - Bloomberg

Germany faces a flat 2024 having slipped into recession. Why is Germany at risk of becoming ‘the sick man of Europe’ and what does it mean for its CEOs?

UK Entrepreneurs Ratchet Up Selling Off Their Businesses

Corporate Finance

UK Employment Rights Bill - What It Means for Your Business

Human Capital

Q&A: Former Novartis CEO Daniel Vasella - McKinsey

Leadership & Strategy