Target attempting to step up their grocery game in DFW

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Target attempting to step up their grocery game in DFW

Post by architect »

In the DFW market, Target has announced that over half of their local store base will be receiving remodels over the coming months. Although the majority of each store will be refreshed, much of the changes revolve around the grocery selection, which is supposedly going to put more of an emphasis on private brands. It will be interesting to see how this pans out, as Target made a similar promise a couple of years ago which led to little change at all. This move is particularly significant in DFW, as a large portion of their store base is comprised of SuperTargets. Target is no longer building new Supers due to the difficulty of making them profitable, but they still need to find a way to manage their existing fleet of these large stores in Super-heavy markets such as DFW, Minneapolis and Florida. This profitability issue is also the reason why quite a few SuperTargets have closed in recent years (particularly in the Atlanta metro area and across Florida).

Also, note that the store list included in the article is not exhaustive, as at least one other store in Richardson has already received the stated renovations. Some photos of the North Dallas - Coit Road renovations currently underway are also below.

https://www.dallasnews.com/business/ret ... e-remodels

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Re: Target attempting to step up their grocery game in DFW

Post by SamSpade »

Good lord, that's what older SuperTargets look like? Is the skylight new or original? The ATM, Restrooms, and possibly the W / food floor aisle markers are all from Target store design in the late 1990's. That is when the Target in my hometown opened. It's finally being updated to the red wall, white neon, changeable cardboard panels that make up more current Target decor.

My family were excited because the Food Express was being removed for a Starbucks Coffee instead.

My only experience with SuperTarget was in Utah, which seemed to be much nicer than the food floor photo below.
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Re: Target attempting to step up their grocery game in DFW

Post by BatteryMill »

SuperTargets only really seem to be regular Targets, however with spread-out grocery (as in PFresh), consistent dual entrances, and the service departments (although having a backseat).

Otherwise, you know, these are just becoming typical, urban millenial-pandering appealing Targets. Sure, I guess some modern features are needed, but the P04 stores they're painting over are just fine and the thing just doesn't have the classic charm.
SamSpade wrote:Good lord, that's what older SuperTargets look like? Is the skylight new or original? The ATM, Restrooms, and possibly the W / food floor aisle markers are all from Target store design in the late 1990's. That is when the Target in my hometown opened. It's finally being updated to the red wall, white neon, changeable cardboard panels that make up more current Target decor.

My family were excited because the Food Express was being removed for a Starbucks Coffee instead.

My only experience with SuperTarget was in Utah, which seemed to be much nicer than the food floor photo below.
Minus a few updates, P01 (2001-03) SuperTargets also looked similar. I did not know that was a skylight (any aerial views?), but I am certain it was original, being a large structure.
The neon is also going extinct in new/remodeled stores. And also, what was about the Food Avenue? That has definitely been a great draw to Target for me, shame it's being so scrutinized by the company now.

Also, I do have to wonder if the service departments are done for at these locations, or will be nicely revamped. Hoping the latter, nevertheless.
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Re: Target attempting to step up their grocery game in DFW

Post by architect »

BatteryMill wrote:SuperTargets only really seem to be regular Targets, however with spread-out grocery (as in PFresh), consistent dual entrances, and the service departments (although having a backseat).

Otherwise, you know, these are just becoming typical, urban millenial-pandering appealing Targets. Sure, I guess some modern features are needed, but the P04 stores they're painting over are just fine and the thing just doesn't have the classic charm.
SamSpade wrote:Good lord, that's what older SuperTargets look like? Is the skylight new or original? The ATM, Restrooms, and possibly the W / food floor aisle markers are all from Target store design in the late 1990's. That is when the Target in my hometown opened. It's finally being updated to the red wall, white neon, changeable cardboard panels that make up more current Target decor.

My family were excited because the Food Express was being removed for a Starbucks Coffee instead.

My only experience with SuperTarget was in Utah, which seemed to be much nicer than the food floor photo below.
Minus a few updates, P01 (2001-03) SuperTargets also looked similar. I did not know that was a skylight (any aerial views?), but I am certain it was original, being a large structure.
The neon is also going extinct in new/remodeled stores. And also, what was about the Food Avenue? That has definitely been a great draw to Target for me, shame it's being so scrutinized by the company now.

Also, I do have to wonder if the service departments are done for at these locations, or will be nicely revamped. Hoping the latter, nevertheless.
As crazy as it sounds, unremodeled SuperTarget locations are probably more common than unremoedeled standard Target locations these days. During the mid 2000's when Target first moved towards "all red" decor packages, the company was primarily focused on constructing new stores (both of the standard and SuperTarget variety). Then, in the late 2000's, Target renovated the majority of their standard Target locations on a market by market basis as part of the P-Fresh remodel program. The only locations which were left untouched were either in remote markets, were low performing, or were at stores scheduled to be replaced in the near future. Now that the P-Fresh rollout is mostly complete, Target is turning their attention back to their SuperTarget stores in major markets. Although the format has officially been discontinued for new stores, their fleet of these stores is simply too large to shut down on a sweeping basis. As a result, Target is renovating some Supers, while gradually closing locations which are in the negative or barely breaking even.

As far as the service departments go, they are being maintained in high-volume locations, while prepackaged products are being brought in for lower-volume stores. In a sense, this creates two classes of SuperTargets: a true SuperTarget vs. a "larger than a P-Fresh store but not really any more inviting" SuperTarget. However, even in stores with true service departments, these departments have been so leanly staffed for years that they pale in comparison to even an average grocer (particularly at the meat and seafood counter, which is almost always unstaffed).
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Re: Target attempting to step up their grocery game in DFW

Post by storewanderer »

It is my understanding Target was (and this may have changed last month when they recruited the former Kroger exec) scaling the Super Targets back to be basically nothing more than a bigger P-Fresh; service departments were being largely switched to entirely prepackaged product with nothing to be prepared or packaged in store, etc.

Back when Super Target was actually trying in the early 00's, those service departments were kind of nice and they did some funny things like deli employees dressed up in chef suits, etc. That was back when they didn't even have a full grocery private label and were using Supervalu for much of it (Flavorite brand items were plentiful). With that said as Super Target always struggled on the grocery side, so did those fresh departments. Target never quite invested the labor or resources into the fresh departments to get them right. Super Kmart did a much better job (and ran much higher volumes) with its bakery, deli, meat, and produce departments which all had fairly legitimate programs. Meijer and Fred Meyer are remarkably better than any of these on service departments (especially Fred Meyer).
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Re: Target attempting to step up their grocery game in DFW

Post by buckguy »

Upping the grocery game was something that was forced on Target by Wall Street, which probably wanted them to imitate Target---food should increase volume and ultimately profits, except it didn't perhaps owing to Targets different "DNA".. Despite having overlapping clientele, Target & Walmart are two very different chains--Target comes from department store roots and its strengths are soft lines and something resembling cheap chic. Walmart comes from small town dime stores and is happy to sell a little of everything. Target might have done better if could have created a cheap chic niche for food, but Trader Joe's pretty much has that nailed down. The problem with food is that needs attention to turnover and an investment in a lot of refrigeration equipment, which is to say it's a big investment with low margins. Food makes sense for Walmart---the perishables aren't great, but the selection is junk food heavy anyway. Food and soft goods don't mix as well and the best thing Target can do is retool the space. The one near me is trying by expanding wine and beer which might work better than selling really outdated produce and crappy packed baked goods. I wouldn't be surprised if there were markets where Super Targets or "enhanced" regular or Greatland Targets do ok and they might have a reason to up their game, but the best thing they can do for their bottom line is go back to their DNA and figure out ho to get more profit from these spaces and probably get rid of the perishable and a lot of other stuff.
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Re: Target attempting to step up their grocery game in DFW

Post by pseudo3d »

Cheap chic is not Target's DNA and arguably I think this has hurt the chain. Target's strength, traditionally, was being a more upscale discounter at a time when everyone else (Kmart, Wal-Mart, Ames, Zayre) was pretty dowdy. The only ones to really come close to Target at the time were Woolco and Venture, both of which eventually went bankrupt. Target had to switch, though, when Wal-Mart and Kmart (the only ones really left by the late 1990s) started to improve their stores.
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Re: Target attempting to step up their grocery game in DFW

Post by storewanderer »

I think they would also be better off focusing on being really good at certain categories vs. their half hearted attempt to have limited food. They should just eliminate produce, meat, the thaw and sell "bakery" items, and the odd deli type items they have in the slower P-Fresh locations.

They could try to run with nice depth on categories they already do well such as coffee and tea, by expanding depth more, having some more exclusive items, etc. Pet is another category where they could have a nice opportunity to expand the category out and have a great mix and make themselves more of a destination for pet items (a lot more pleasant here in Reno to go buy pet items at the clean Target than the not so clean Petsmart across the street that smells putrid of pet urine).

I think they should look at consumables beyond "food" specifically fresh food, to try to differentiate. Food is too crowded of a space and a zero sum game. Not all consumable departments are though.
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Re: Target attempting to step up their grocery game in DFW

Post by mbz321 »

pseudo3d wrote:Cheap chic is not Target's DNA and arguably I think this has hurt the chain. Target's strength, traditionally, was being a more upscale discounter at a time when everyone else (Kmart, Wal-Mart, Ames, Zayre) was pretty dowdy. The only ones to really come close to Target at the time were Woolco and Venture, both of which eventually went bankrupt. Target had to switch, though, when Wal-Mart and Kmart (the only ones really left by the late 1990s) started to improve their stores.

In the Philadelphia area, Clover stores were pretty close to how Target used to be...a bit upscale (definitely more so than the other players at the time of Kmart/Bradlees/Caldor/Jamesway) with a broad merchandising mix. Although the chain never expanded much outside the Southeastern PA/NJ/DE area, and closed when the department store behind it, Strawbridge and Clothier, was taken over by the May Co around 1996. Target wouldn't start appearing in the region for a few more years.)

The cheap chic did well for Target for a while, but in the meantime, Target tended to alienate the male demographic by cutting back on departments like sporting goods, automotive, Men's clothing, hardware, etc.), and adding in groceries only whittled down those departments to almost nothing. There are so many options for home goods now (including in my area, an Independent liquidation store that tends to buy a ton of old/overstock/customer returned home goods from Target and sells them for much less), not even counting Internet outlets, Target is just kind of there.
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Re: Target attempting to step up their grocery game in DFW

Post by pseudo3d »

mbz321 wrote:
pseudo3d wrote:Cheap chic is not Target's DNA and arguably I think this has hurt the chain. Target's strength, traditionally, was being a more upscale discounter at a time when everyone else (Kmart, Wal-Mart, Ames, Zayre) was pretty dowdy. The only ones to really come close to Target at the time were Woolco and Venture, both of which eventually went bankrupt. Target had to switch, though, when Wal-Mart and Kmart (the only ones really left by the late 1990s) started to improve their stores.

In the Philadelphia area, Clover stores were pretty close to how Target used to be...a bit upscale (definitely more so than the other players at the time of Kmart/Bradlees/Caldor/Jamesway) with a broad merchandising mix. Although the chain never expanded much outside the Southeastern PA/NJ/DE area, and closed when the department store behind it, Strawbridge and Clothier, was taken over by the May Co around 1996. Target wouldn't start appearing in the region for a few more years.)

The cheap chic did well for Target for a while, but in the meantime, Target tended to alienate the male demographic by cutting back on departments like sporting goods, automotive, Men's clothing, hardware, etc.), and adding in groceries only whittled down those departments to almost nothing. There are so many options for home goods now (including in my area, an Independent liquidation store that tends to buy a ton of old/overstock/customer returned home goods from Target and sells them for much less), not even counting Internet outlets, Target is just kind of there.
Target has become pretty useless for a lot of things, a lot of merchandise I've wanted to buy and was there looked like it had already been opened and returned, and it's also taken the trend of having less people on the floor, making it just as useless as Walmart. Groceries are pretty useless at the way they still keep relatively small footprints, have destroyed depth, and the grocery departments that are there just aren't very good. They lack the full service departments that real grocery stores have, and don't even have fresh produce. If they really cared about grocery, they would at least make larger stores--they have the money to do so and have replaced smaller locations before. But they really don't. Grocery at least seems to be better stocked than Walmart, generally, but probably because their volume is so much less.
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