Market Trend and Issues 2
Store Expansion - Grocery
According to Target’s 2010 Annual Report, they completed numerous store remodels.
investing resources into their existing stores, they have made Target the supreme one-stop shopping
The enhancements that were done include the following departments:
grocery, beauty, home
electronics, and shoes.
The biggest department expansion was done in order to expand on their fresh food
The design and layout allows for more of an open-market feel and now includes fresh
produce, meat, dairy, and over 700 organic foods in their SuperTarget stores. (Target, 2011)
The expansion and rollout of Target’s P-Fresh format will more than likely entice consumers and
increase traffic / same-store sales.
But by expanding more into the grocery sector, Target will now be
competing not only with Wal-mart, but also the major grocery chains.
Kroger Company, which owns Smith’s , Smith’s Marketplace, and other well known market
stores is one of many large grocery store chains that have mimicked the one-stop shopping experience
like Wal-mart and Target.
With their primary focus on grocery, they have also clothing, electronics,
pharmacy, furniture, outdoor living, and jewelry.
They operate in 31 states and have 2,400 grocery retail
stores and 338,000 employees.
Recent data indicates that in 2010, Kroger increased market share 80
basis points across 19 major markets, while their competitor Wal-mart had a market share of 75 in 17 to
19 major markets. (Kroger, 2011)
Kroger has been a food and drug retailer for many years and was founded by Bernard Kroger in