Following another disappointing quarter, Target said it is revamping 130 locations, focusing on expanding unique food selections within stores.
Target's grocery offerings have grown over the years but still pale compared with other full-service supermarkets that offer deli counters and fresh-baked goods. Despite these obstacles, Target said it has become the nation's fifth-largest digital grocer.
"We are not trying to be an everything grocer or just another grocer down the street," said Cara Sylvester, chief guest experience officer at Target. "Instead, we're building a truly distinctive grocery destination where emerging brands, wellness and our own brands intersect. Put another way, we're bringing even more of our style and design authority to food for families looking for fun, trend-forward options, whether it's for lunchbox snacks or a Tuesday night dinner."
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Although Target is not aiming to be an "everything grocer," new and remodeled stores will feature larger grocery sections.
Sylvester said food helps attract visits, which in turn fosters loyalty.
"Food drives traffic to our store. It opens the box for guests to come into our store and explore the rest of Target. We're very comfortable leaning into food because we know it drives traffic," said James Lee, Target's chief financial officer.
Target said stores should expect to undergo a full remodel every 10 to 15 years.
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In addition to remodelling 130 locations, Target expects to open 30 new stores this year, bringing its total to more than 2,000.
