For
additional information contact:
Kathy Clarke
Retail Forward
614/355-4009
kclarke@retailforward.com
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Target Challenged to Find Growth in New Decade, Retail Forward Reports Assess Retailer’s Strategies and New Prototype
COLUMBUS, July 8, 2009—Although the sinking economy is taking its toll on Target, Retail Forward identifies opportunities the retailer can pursue to help manage through the downturn and position the company for future growth.
Dramatically slowed sales growth, same-store sales declines and plummeting profits have forced Target to adjust its go-to-market strategies. “As Target prepares for a new decade of growth, the retailer must look for more ways to resonate with today’s shoppers and become more relevant in meeting their needs as well as their wants,” comments Jennifer Halterman, Senior Consultant and author of the Retail Forward Intelligence System™ report, Target Outlook: Preparing for a New Decade.
In the recently published study, Retail Forward evaluates the retailer’s existing growth strategies and identifies opportunities, such as improving price perception, facilitating quick trips and enhancing the service offer, that if pursued could help the retailer manage through the downturn and position for future growth.
As Target adjusts its strategies to better position its stores in this tough economy, manufacturer partners must modify their strategies as well. “Manufacturers that arm Target with insights on consumer trends, shopping behavior and categories will emerge as winners,” states Halterman. “It also is the right time for competitors to steal share from Target as it continues to fine-tune its strategy,” she adds.
One area in need of fine-tuning is Target’s grocery business. “Target faces significant challenges when it comes to doing food right,” comments Halterman. Retail Forward ShopperScape™ research indicates that three out of 10 shoppers shopped for food/beverages during their last trip to Target. Compare this with more than four out of 10 shoppers at a Walmart discount store. “Our ShopperScape™ survey data also reveals that Target struggles to motivate shoppers to make SuperTarget their primary grocer,” she adds.
In its quest to grow grocery, Target is focusing on a new general merchandise store prototype “PFresh,” which offers an expanded grocery assortment and includes fresh foods. The prototype was featured in a recently published Retail Forward Intelligence System™ report, Target Prototype: Will Fresh Food Help?
“The addition of fresh food inside Target general merchandise stores is a logical next step in the evolution of the retailer’s grocery offer,” comments Halterman. “However, we see plenty of opportunities for Target to enhance the prototype by integrating more unique products, tailoring assortments and upping the convenience quotient,” she adds based on a recent store visit. “With a few adjustments, we believe Target can steal some trips away from supermarkets.”
Retail Forward also believes that the addition of fresh food inside a large number of Target general merchandise stores will likely divert some of the company’s future investment in SuperTarget.
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About Retail Forward
Retail Forward ((www.retailforward.com
») is a global management consulting and market research firm specializing in retail intelligence and strategies. The company's syndicated research and executive development program, known as the Retail Forward Intelligence System™, provides members with an authoritative perspective on the retail and consumer products industries. “Target Outlook: Preparing for a New Decade” and “Target Prototype: Will Fresh Food Help?” are published in the Target Program.
For details on the Retail Forward Intelligence System™, contact Katherine Clarke, Vice President Marketing, at 614.355.4009 or kclarke@retailforward.com »