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Target sharply increases grocery offerings

MINNEAPOLIS -- Although it has yet to commit to rolling out its SuperTarget supermarket-discount store concept, Target Stores is expanding its grocery offerings at all of its stores as they are remodeled.

Target Stores, a subsidiary of Minneapolis-based Dayton Hudson Corp., is unrolling a nationwide plan to introduce high-demand, high-volume convenience items such as dairy products, orange juice, bread, cereal and dry goods to all of its stores. In all, there will be about 200 new grocery items.

Called "The Market," the mini-grocery station concept grew out of its SuperTarget grocery-discount supercenter format, which the discounter is testing in several Midwestern states.

Originally starting out with 13 Target stores nationwide, Target was aiming to have the mini-grocery station added to up to 100 more stores by year-end, said Dayton Hudson spokeswoman Susan Eich.

"We're not going to be retrofitting our stores all at once -- just as they need to be remodeled," she said.

Dubbed "The Market," the discounter began testing the new concept at stores in Rockford, Ill., Des Moines, Iowa, and Janesville, Wis., in May 1996. In March 1997, it expanded the format to an additional 10 stores in Minnesota, Iowa, Ohio and Colorado.

Of the three big discount chains, Target is the farthest behind in introducing a supercenter format. Wal-Mart, with 362 stores, is by far the leader, especially since Kmart has cut back its growth.

Target, in fact, still considers the new SuperTarget format a test and has not committed to the new strategy, Ms. Eich said. Target now has 11 SuperTarget stores -- none in Minnesota -- and will open two more this year. The company will likely make a decision on the concept sometime next year, she said.