UPDATE: Beginning details poured out regarding Target's new food plans Tuesday afternoon. Target CEO Brian Cornell told investors, "Guests have asked us to elevate the assortment of food, to elevate the in-store experience and to celebrate the joy of food. So we will test what we need to do over the next year to enhance the section because we believe food represents a significant opportunity for us."
Kathee Tesija, Target's chief merchandising and supply chain officer, said 2015 will be a testing stage for the retailer in terms of food, with more intensive strategies starting in 2016, reports Supermarket News.
- Yet another company is targeting millennials: Target. The chain is looking to harness seven grocery departments, among them granola and yogurt and beer and wine, to appeal to younger customers and have a less Wal-Mart-like feeling, reports The Wall Street Journal. Grocery makes up about 20% of the company's yearly sales.
- The retailer is looking for a new grocery head following two recent replacements, and Target's CEO Brian Cornell has reportedly been interviewing potential hires, according to a source reported by the Journal. Cornell sees updating grocery as "a priority," reports the Journal.
- An unnamed source told the Journal that Target execs don't foresee large revamping to come to stores for at least another few months.
Consumers certainly appear to have the edge over large food companies these days, as millennials' health focus in particular looks to be influencing Target's plans. The company previously announced they would be offering more organic, natural, and gluten-free foods to its offerings.
Just last week, Cornell spoke with investors and said, “We recognize we have a lot of work to do in food. We won’t get there overnight.”
Whether these new plans will translate to increased sales for Target, however, remains to be seen.