Target Is Planning Major Changes That Will Impact the Way You Shop
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As the cost of goods continues to rise in America, the average consumer has no choice but to get creative with where they spend their money and on what. When you have an already tight budget, inflation can be a very inconvenient factor in your weekly shopping needs, and the stores that you can usually rely on sometimes end up being too pricey for your continued business. Such has been the case for Target — who on May 17 reported another quarterly profit decline — and it’s why they’re actively making some big changes to hopefully sway shoppers back in their direction.
The Minneapolis-based retailer has not only been dealing with the issue of rising costs, but as a direct bi-product of the issue, an increase in theft. Not to mention the fact that shoppers are already wary to spend money. Target, however, has taken note of the problem, and as a result, is taking measurable steps to curb the unwanted trend in their loss in profits. The plan? To place a greater emphasis on groceries.
In an interview with CNBC, Chief Food and Beverage Officer Rick Gomez stated that “It’s actually a gateway to the rest of the store. It drives traffic to the store. It drives traffic to our site. And then while they’re picking up what they need food and beverage wise, they’ll browse through the rest of the store, and maybe pick up a few things at Ulta (Target’s beauty collection) or a few things in apparel.”
With the new emphasis on groceries, Target is adding more items to its grocery brand, Good & Gather, as well as its snacks and desserts brand, Favorite Day. And as far as prices go, Target is choosing to focus on quality rather than discounts.
“When times are tough and you’re paycheck to paycheck, you can’t afford to buy food that nobody eats,” Gomez said. “So it’s really important to us that we offer value which is a good price, but also really good quality.”
Of the other big changes, Target is expanding security and locking up items to quell the latest trend in violent thefts, as well as making investments in their current store locations with the addition of services like drive-up service for customers, store renovations, and improvements to online shopping. Additionally, 10 new Target brands are expected to hit shelves this year, with more products being offered at the $3, $5, $10, and $15 price points, as well as major changes and added promotions to the Target Circle loyalty program.
Whether you were already a Target shopper or not, it might be worth it to your pocketbook to take a gander at what they have to offer as the year progresses.
Wondering what other stores have big changes in store? Dollar General’s newest plans will impact shoppers both new and old.
