It is an axiom in food retailing that Target is a place to go to buy general merchandise and at the same time pick up some food items.  Recognizing the potential to increase both sales value and traffic, Target will emphasize food and beverage items going forward.  Improved performance over the second quarter was attributed in part to the food segment that has now attained 23 percent of fiscal 2023 sales, up from 19 percent in FY 2019.

The Target program will include:-

• Reducing prices on food items.  This initiative improved comparative sales by two percent.  The company intends to reduce everyday prices on many SKUs.

• Target will concentrate on seasonal merchandising of food and beverages with appointment of new Chief Merchandising Officer for food essentials and beauty.  Examples of seasonal stocking and promotion will include offering products for snacking, grilling and entertaining with placement of appropriate items.

• Promotion of store brands will be intensified. The Good & Gather™ family of products has achieved close to $4 billion in sales since introduction in 2019.  The program will be extended with introduction of the Favorite Day™ brand with an “indulgent image” but at an affordable price.

• Target will continue to expand digital sales that now account for 18 percent of revenue by emphasizing drive-up, in-store pick-up and same-day delivery through the Target Circle online membership program.

Target under the capable management team led by Brian Cornell is aware of opportunities to increase traffic and sales through expanding offerings of food and beverage products.