1/31/10

With sales tanking, Tarbutt looks for something new


Target has been hit hard in the economic slump, and it is revamping 340 old stores at a $1 billion dollar cost opening only 10 new ones this year. They will redo 300 to 400 stores per year.

You will see the new store format starting in April and they will feature spruced up home furnishing offerings, larger grocery sections, better video game displays and shelf lighting in the beauty section. It is changing every part of its stores to increase sales and grab market share from rivals even testing out bulk sales in some stores to try and compete with the lower prices found at Wal Mart/Sams Club stores. Employee moral in these stores seems to have droped as the company edges towards the sloppy look found in the low cost discount stores.


Key in the renovations will be the enhanced grocery sections, they hope will bring shoppers in more often. Target introduced perishable items like bananas and lettuce in about 100 of its general merchandise stores last year. They now have 250 of the Super Target stores.

It costs $1 million to add the new PFresh food format to an existing general-merchandise store. That compares with $10 million to convert such a store to a Super Target. The PFresh concept combines fresh food like produce and meat with grocery items.

Target, and Wal Mart are both looking into opening smaller stores in large cities and in coming years Target plans to open stores in Canada and Mexico
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