Target Tailoring Groceries to Millennials

Target Corp. (Minneapolis) is focusing its grocery strategy to appeal to three key demographics: young families, urban dwellers and Hispanics.

The company has identified seven grocery categories: yogurt and granola; coffee and tea; candy; snacks; beer and wine; fresh meat; and produce, which will receive more focus from merchandising teams and greater prominence in displays and marketing, according to The Wall Street Journal. The categories resonate with Target’s customer base — shoppers born in the '80s and '90s, who tend to buy fewer more processed foods than their parents’ generation.

Groceries account for about 20 percent of Target’s $73 billion in annual sales. Brian Cornell, ceo and Kathee Tesija, chief merchandising officer, are expected to outline the company’s grocery initiatives for investors later today.