At the end of the day Target's best business has been higher margin non food. Target's entire business model revolves around taking the exact same stuff Wal Mart imports from overseas, presenting it better, and getting an extra $1 or $2 for it.retailfanmitchell019 wrote: ↑March 11th, 2023, 12:05 pm
In 2005, before the Albertsons breakup, there was rumors of Target acquiring Albertsons. That could've helped their grocery strategy.
It is a lot easier to sell general merchandise than food. It takes far less labor, it does not spoil out, it is just a much easier business.
As far as I'm concerned the ship has sailed for Target when it comes to grocery. Short of a complete crisis in their company where it is about to die, I don't see anything changing. If the situation at Target somehow gets so dire that the company is on the brink (which I don't see happening), then I think we may see a scenario where they are desperate for some quick 20-30% revenue gains and they come out and say okay- we are converting half of our stores to full grocery format (remember when Kmart did that announcement then went bankrupt not long after) over the next 2-3 years. Also I think such a strategy would fail and only hasten their demise just like it did for Kmart.
The other problem is many Target Stores are not located correctly to do a high grocery volume.