Target Looks to Woo Younger Shoppers With Grocery Revamp
Target (TGT) has zeroed in on seven grocery categories, including granola, yogurt and craft beer, to attract younger shoppers, urban dwellers and Hispanics, The Wall Street Journal reported, citing people familiar with the matter.
The U.S. retailer is showing signs that its food direction will become less reliant on packaged and processed foods that are out of favor with many consumers, the Journal said.
The changes would mean less shelf space for packaged food companies, including Campbell Soup (CPB), General Mills (GIS) and Kraft Foods (KRFT).
Target is also looking to hire an executive with grocery experience to head the business and Chief Executive Officer Brian Cornell has been interviewing candidates in recent weeks, the newspaper said.
Company representatives weren't immediately available for comment outside regular U.S. business hours.
Target is expected to unveil plans for new investments and cost cuts at an analyst meeting Tuesday in New York.
Under Cornell, who took over as chief executive in August, Target has already made a few big strategic shifts, including pulling out of the Canadian market and refocusing on a few key product lines such as beauty, apparel and baby goods.