Signs of trouble at Target?

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Re: Signs of trouble at Target?

Post by Super S »

I stopped in to the Kelso Target again yesterday and noticed an interesting development. Mainly the fact that the restaurant was closed and in the process of being remodeled into a Starbucks. Meanwhile the rest of the store has not been remodeled. This location seems to be limping along and it will be interesting to see what will happen here now.
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Re: Signs of trouble at Target?

Post by storewanderer »

They did the same thing in the Reno Target, but they actually kept the Food Avenue/Pizza Hut Express. It is a large Target Greatland so the Food Area was huge and it was easy to put Starbucks in by cutting out some of the previously large (maybe 30 tables) seating area.

So far the Carson City Target which has been unremodeled since opening day 1995 and even has its original shopping carts and baskets from 1995, has not received any such upgrades.
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Re: Signs of trouble at Target?

Post by BillyGr »

Super S wrote:I stopped in to the Kelso Target again yesterday and noticed an interesting development. Mainly the fact that the restaurant was closed and in the process of being remodeled into a Starbucks. Meanwhile the rest of the store has not been remodeled. This location seems to be limping along and it will be interesting to see what will happen here now.
They did similar with one store here (during the fresh food remodels). This particular store had just Target food (no Pizza Hut, no anything else). They remodeled that space to be a Starbucks, but kept some of the Target stuff (like soda & slush drinks and perhaps some of the food).
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Re: Signs of trouble at Target?

Post by submariner »

BillyGr wrote:
Super S wrote:I stopped in to the Kelso Target again yesterday and noticed an interesting development. Mainly the fact that the restaurant was closed and in the process of being remodeled into a Starbucks. Meanwhile the rest of the store has not been remodeled. This location seems to be limping along and it will be interesting to see what will happen here now.
They did similar with one store here (during the fresh food remodels). This particular store had just Target food (no Pizza Hut, no anything else). They remodeled that space to be a Starbucks, but kept some of the Target stuff (like soda & slush drinks and perhaps some of the food).
This could have something to do with it... http://consumerist.com/2015/08/21/targe ... -in-sight/
USA Today reports that 14 Target stores will serve as the testing grounds for a new cafe concept that ditches hot dogs and cheese-drenched nachos in favor of pressed juices, green salads and “artisan” pizza.

The new concept, which will begin being tested in October, comes in several food categories.

One cafe concept – called Freshii – will be available in nine stores, offering customers salads and pressed juices, while three other stores will open Pizza Hut restaurants featuring a limited menu of “artisan” pies, like margarita and barbecue chicken.

Two stores in Minneapolis will host outposts of local Italian restaurant D’Amico & Sons.
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Re: Signs of trouble at Target?

Post by storewanderer »

I'm finding it somewhat interesting Target continues to operate some kind of food service in most (if not all) of its stores. As Wal Mart and Kmart have both largely stopped this practice of operating their own food service (we know Wal Mart does a lot of subleasing to McDonalds and Subway primarily, but also in some examples I've seen Wendys and Blimpie subleasing space inside Wal Mart). Some of the Wal Marts in my area no longer have a food service offering at all. I don't think Wal Mart operates any of its own food service areas anymore, except for the cafe attached to the museum in Bentonville?

Kmart, who knows what is going on there...
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Re: Signs of trouble at Target?

Post by wnetmacman »

storewanderer wrote:I don't think Wal Mart operates any of its own food service areas anymore, except for the cafe attached to the museum in Bentonville?
Not all of the Walmart Subway and McDonald's locations are subleased. Some (actually, a good deal) are run by Walmart itself. They don't operate foodservice in every single store any longer. Single entrance, smaller Supercenters, Neighborhood Markets and Express stores have nothing. If a store has a Deli, it has the Grab and Go foods there. They have really done a good job of varying the store's offerings to the locale. Target, OTOH, likes to give everybody the same thing.
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Re: Signs of trouble at Target?

Post by Super S »

storewanderer wrote:I'm finding it somewhat interesting Target continues to operate some kind of food service in most (if not all) of its stores. As Wal Mart and Kmart have both largely stopped this practice of operating their own food service (we know Wal Mart does a lot of subleasing to McDonalds and Subway primarily, but also in some examples I've seen Wendys and Blimpie subleasing space inside Wal Mart). Some of the Wal Marts in my area no longer have a food service offering at all. I don't think Wal Mart operates any of its own food service areas anymore, except for the cafe attached to the museum in Bentonville?

Kmart, who knows what is going on there...
The Walmart closest to my house expanded to a Supercenter a couple years ago and did away with an in-store restaurant. It previously had a McDonald's inside, but also has a McDonald's across the parking lot since about when the store opened. There also is a Subway across the parking lot.

Kmart has done away with restaurants in most areas, but I do know of one in Chehalis, WA still operating a Little Caesars. This one is different in that the restaurant is at the front center of the store, a typical 1970s era store, which was heavily remodeled after flooding a few years back. That store does well despite being next to a Walmart.

The in-store restaurants today (in general) aren't so much a destination as they are a place that shoppers can take a quick break, but offering national brands does increase "to-go" sales to some extent as people will sometimes grab something on the way out the door so they don't have to make another stop.
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Re: Signs of trouble at Target?

Post by storewanderer »

All of the McDonalds/Subways I've ever seen in Wal Mart Stores are franchised operations. I seem to recall a number of years ago hearing that McDonalds/Wal Mart were parting ways but I've kept seeing McDonalds in Wal Mart Stores and even some new stores that opened in my area since I heard that have McDonalds inside. Maybe that article was just referring to Wal Mart-operated McDonalds not the franchised ones inside the stores. There are also the odd menu variances in those McDonalds, for instance, they sell pretzels and I believe also popcorn. In the mid-late 1990's, they sold pizza. Also in the mid-late 1990's, the McDonalds inside Wal Mart gave you the food in a clear plastic bag rather than the typical paper bag (theft reasons).

Back to the mass merchants, I think the in-store restaurants also served a good purpose for employees. But as times have changes, more retailers have it where employees just work part time shifts (maybe without having a lunch break), store volumes have fallen in Kmart/Target so there are fewer employees in general, I can see where less business would come from employees also.
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Re: Signs of trouble at Target?

Post by BillyGr »

storewanderer wrote:There are also the odd menu variances in those McDonalds, for instance, they sell pretzels and I believe also popcorn. In the mid-late 1990's, they sold pizza. Also in the mid-late 1990's, the McDonalds inside Wal Mart gave you the food in a clear plastic bag rather than the typical paper bag (theft reasons).
I also seem to remember at least one Walmart with a McDonalds where they had a smaller menu, probably due to space (or lack there of). Something like, for example, having the breaded chicken (fried) but not the grilled option.
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Re: Signs of trouble at Target?

Post by Super S »

So I stopped in at this store again today. I got a mixed signal. The Starbucks was in fact open, but was completely deserted except for the employees. They took out the booth seating and just have a few tables now. But this looked like a very low budget Starbucks compared to what I have seen at other Target stores, and it looked like the regular food service they had is no more.

I also noticed that they repainted the outside of the building sometime within the last two months. However, the rest of the inside is untouched. This location now looks like it could go either way.
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