Target (NYSE:TGT) is in the midst of a grocery revamp, as an attempt to make the department a destination for its shoppers. The grocery overhaul, one of the priorities set by CEO Brian Cornell, is taking longer than originally anticipated.
The initiative was first unveiled in March and was anticipated to be substantially completed by 2016, StarTribune reported. However, Target said it will continue to test the grocery department changes and has pushed back the rollout to 2017.
"We want to get it right," Katie Boylan, a Target spokesperson, told StarTribune. "It's less about how fast we go and more about making sure we implement the right kind of changes. We're trying to be really judicious in our approach."
Although specific examples are still unknown, the goal is to increase traffic and drive more trips to the big-box retailer. Target executives project that if the changes could drive one more visit to Target every three months per visitor, it would equal $2.5 billion in additional sales a year. Currently, food accounts for $20 billion of Target's $73 billion annual sales.
But if anyone can do it, it's Cornell, who previously held positions at Sam's Club, Safeway and PepsiCo. In April, he hired Anne Dament to head up the effort as senior VP of merchandising in groceries.
Currently Target is conducting small tests across the country. In conjunction with its in-store revamp, the retailer began testing grocery delivery in select Minneapolis neighborhoods and some western suburbs.
-See this StarTribune article
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