Target Banks on Groceries to Improve Sales

In an effort to beef up sales, Target Corp. (Minneapolis) is introducing mini-groceries to 100 new and remodeled stores this year, and eventually, may take the fresh fare to most of its 1300 stores, according to The Wall Street Journal.

More than a decade ago, the trendy discount merchandiser opened more than 200 SuperTargets, which included a grocery offering, but it’s been slow to add such aisles to its smaller stores.

The new mini-grocery concept will carry a narrow selection of products from 90 percent of the food categories in larger stores, excluding a deli, fresh seafood or bakery. Fresh produce comes wrapped in plastic with a bar code to eliminate the need to weigh product, while speeding up the checkout process. Fifty percent of test stores with the grocery section have seen food sales increase, while lifting sales of other items.

Target ceo Gregg Steinhafel told The Journal that the mini-grocery concept has a high impact for a low price, costing one-tenth the amount of super-sizing a regular store.