Groceries at Target?

Answers to Questions:

1) Groceries account for a fifth of Target's revenue or $18.5 billion in sales every year.

2) Some Crucial things that are affecting the groceries Target are offering to their customers are:

- The fact that they came into the grocery business a little too late. Customers don't see Target as a place to buy groceries, but a store where you can find home improvements (toileteries, home decor, cleaning supplies) and stationaries (School supplies and books).

-There's also the problem with the spoilage of the groceries they offer. The perishables they offer are going bad in a matter of days and the shoppers are visiting the store more often to return spoiled food. Also, the shoppers are not buying the food in time before it spoils and are unable to be sold.

-There are so many other grocery stores out there that are sometimes better than the groceries Target offer. So, what about Target that makes Target so special that could make people go out of their way to shop at their store?

3)People go to grocery stores mostly for fill-in trips because the things you find there are usually ones you pick up on the spot while you're buying something else or something you need once in a while.

Meanwhile, at the wholesale clubs, they sell things in larger quantities that last longer, so you can store them somewhere for a longer period of time. Which is why they are called stock-up trips.

4)Target need to increase their traffic double the amount for the perishable foods.

5)I think people may not choose Target as the place the would shop for groceries because it may sometimes not be convenient for them to go there just to buy groceries. If you think about it, Target is a store for fill-in trips, so , thy may not go there that often. Plus, there may be other grocery shops that they are more used to, and Target for them may be very far away.

6)Target have made pushes to add more organic and gluten-free brands, and 1000 new brands. This affects the P for product because this kind of information or products appeal to what the customers usually want.

7) Some things that Target has done strictly for their groceries are:

-Improving the looks and inventory managements in some Target stores. Especially redecorating the perishable food's area to attract customers.

-Aaron Alt, the Target executive, closed all the Target Stores in Canada and sold all the company's pharmacies and clinics to fund in improving grocery business.

-They focused more on the seasonal products and worked on making the offerings at the Target stores more local.

8) Comparing some of the grocery prices of Target, Walmart, and Meijer, I noticed that in most cases (ex:cookies and meat), the prices are either the same or off by a couple to ten cents. But, there are also some rare cases, where the pricing(ex: Jolly Ranchers and Hersheys) are off by about one to three dollars. And it's usually Target's price that cost more.

Ex: Jolly Ranchers- Walmart: $8.08  Target- $8.99