Why Target is struggling with its grocery business

By Sumit Modi

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

Amelia DeLuca, CSO at Delta Air Lines on Female Leadership

Driving decarbonisation at Delta Air Lines, Chief Sustainability Officer Amelia DeLuca discusses the rise of the CSO and value of more women in leadership

Liz Elting – Driving Equality & Building Billion-$ Business

Founder and CEO Liz Elting Turned Her Passion into Purpose and Created a Billion-Dollar Business While Fighting for Workplace Equality – and Winning

JPMorgan Chase: Committed to supporting the next generation

JPMorgan has unveiled a host of new and expanded philanthropic activities totalling US$3.5 million to support the development of apprenticeship programmes

How efficient digital ecosystems became business critical

Technology & AI

Mastercard: Supporting clients at a time of rapid evolution

Digital Strategy

Why Ceridian has boldly rebranded to Dayforce

Human Capital