Target’s Pfresh Grocery Growth Strategy

Target’s Pfresh Grocery Growth Strategy

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PfreshPfresh

Target’s Grocery Strategy

What is Pfresh?

Rollout plans

What this means for you

Future information

Target’s Grocery Strategy

What is Pfresh?

Rollout plans

What this means for you

Future information

Target’s Grocery StrategyTarget’s Grocery Strategy

Drive Frequency and Guest trips

Communicate Value

Increase overall basket size

Dedication of Target resources for Grocery $3 billion capital investment by TGT

Realization of margin mix pressure as grocery outpaces other areas in Target.

Drive Frequency and Guest trips

Communicate Value

Increase overall basket size

Dedication of Target resources for Grocery $3 billion capital investment by TGT

Realization of margin mix pressure as grocery outpaces other areas in Target.

What is Pfresh?What is Pfresh?

Pfresh is a new store prototype that will change the way the Target guest shops for groceries.

Have the items that our guest needs to complete her grocery shopping list, making Target a viable option for her “fill-in” grocery trip.

The assortment will be focused on category breadth and will offer a selection of high-frequency perishable items; comprehensive dry, dairy and frozen food assortments; and expanded convenience foods in snacks and beverages.

Pfresh is a new store prototype that will change the way the Target guest shops for groceries.

Have the items that our guest needs to complete her grocery shopping list, making Target a viable option for her “fill-in” grocery trip.

The assortment will be focused on category breadth and will offer a selection of high-frequency perishable items; comprehensive dry, dairy and frozen food assortments; and expanded convenience foods in snacks and beverages.

What is Pfresh Cont.What is Pfresh Cont.

Increased grocery space: 24/38 current sides of food to 55 sides in a Pfresh. Up to a 129% increase in space.

Extremely visible store location, able to be seen from the checkout lines.

In-store signage and an external media campaign will help drive store traffic.

Increased grocery space: 24/38 current sides of food to 55 sides in a Pfresh. Up to a 129% increase in space.

Extremely visible store location, able to be seen from the checkout lines.

In-store signage and an external media campaign will help drive store traffic.

Pfresh PhotosPfresh Photos

Pfresh Photos Cont.Pfresh Photos Cont.

Pfresh roll-out plansPfresh roll-out plans

Plan to roll-out approximately 1,000 stores within the next 3 years.

Target will use a “market blitz” approach for converting the stores. This means Target will focus its efforts on converting entire markets over rather than isolated openings.

The market blitz strategy will allow our marketing department to make larger statements in these markets.

In 2010 our focus will be on high volume markets

Plan to roll-out approximately 1,000 stores within the next 3 years.

Target will use a “market blitz” approach for converting the stores. This means Target will focus its efforts on converting entire markets over rather than isolated openings.

The market blitz strategy will allow our marketing department to make larger statements in these markets.

In 2010 our focus will be on high volume markets

What this means for youWhat this means for you

During our upcoming line review we would like to have discussions surrounding:

Recommendations on Pfresh assortment

Volume impact and cost structure

Supply chain opportunities

Scans and volume rebates

Our goal is to have the right items for the guest at a blended margin that allows Target to continue to expand this format.

During our upcoming line review we would like to have discussions surrounding:

Recommendations on Pfresh assortment

Volume impact and cost structure

Supply chain opportunities

Scans and volume rebates

Our goal is to have the right items for the guest at a blended margin that allows Target to continue to expand this format.

Future InformationFuture Information

Feel free open the attachment below to read what the press has been saying about Pfresh.

Feel free open the attachment below to read what the press has been saying about Pfresh.

Targe t Pf res h WSJ Article May 2009