Target Could Open One Food DC Per Year for 10 Years: Analyst

MINNEAPOLIS — Target Corp. here could open an average of one food distribution center per year for the next 10 years to serve a rapidly expanding number of SuperTarget locations, according to a New York-based analyst. Deborah Weinswig, an analyst with Citigroup Global Markets, in a written report said Target's decision to open its own food warehouses could enable the growth of SuperTargets to mirror that of Wal-Mart Supercenters over the 14 years since Wal-Mart began opening its own food distribution centers. Target has announced plans to open the first facility — a perishables warehouse – next year in Lake City, Fla. Target would own the building and inventory, while Supervalu, also based here, would oversee the logistics. Target has said SuperTargets will represent 25% to 40% of its unit growth going forward, compared with 15% to 25% over the past three years. Target officials could not be reached for comment on Weinswig's report.

Read More of Today's Headlines