MINNEAPOLIS -- Target Stores will be offering more food in more stores in the year ahead. The retailer, based here, saw consumables boost sales in the past year.
Target plans to reinforce its "Eat Well, Pay Less" message in its SuperTarget stores, where food is sold, by broadening its meal solutions and assortment of foods with a healthy aura. Company officials revealed these changes in a recent fourth-quarter and year-end conference call with financial analysts.
More prepared foods, quick-meal recipes, wine and a coming line of USDA Choice Angus beef will make their way into stores, Gregg W. Steinhafel, president, Target, said during the call.
Target also will increase the breadth of healthful and organic products available, such as whole-grain breads and cereals, all-natural chicken, low-carb potatoes, and baked foods free of trans fats, he said.
The chain also has added to its seasonal food offerings around food-related holidays like Easter, July 4th, Thanksgiving and Christmas.
Other initiatives aim to promote a message of convenience and good value to food shoppers. To that end, Target said it has expanded its club pack offerings to every category, citing candy, lunchbox pizza and appetizers as examples.
It plans ongoing use of special purchases and single price-point endcaps. Target also intends to continue its effort to increase penetration of its private-label brands, Archer Farms and Market Pantry. The contribution of those brands to total sales has entered into the low double digits.
Steinhafel said sales of both brands, which underwent a packaging overhaul and expansion last year to include about 2,900 stockkeeping units in all, have been strong.
About a quarter of net square-footage growth in 2004 came from SuperTargets. The company plans to stick to that ratio in the year ahead, when it plans to open about 110 new stores, or a net of 90 to 95 stores, Steinhafel said.
