Target CEO Brian Cornell says shoppers are pulling back, even on groceries, as they feel stressed about their budgets.
In an interview with CNBC’s Becky Quick that aired Thursday morning, he emphasized that the retailer has posted seven consecutive quarters of declining sales of discretionary items, such as apparel and toys, in terms of both dollars and units.
“But even in food and beverage categories, over the last few quarters, the units, the number of items they’re buying, has been declining,” he said in the interview.
I always figured their grocery section would end up like their in-store pharmacy, i e., no one would use it and it would end up a vestige of a failed business model.
It surprises me when I see people buy food from target since there are other stores with the same or similar quality items for cheaper. I don’t think target has much value proposition from their own brands like Archer Farms (if that even is a target exclusive brand anymore).
If anyone sees this comment and shops at target for their groceries, would you mind explaining why?
I occasionally pick up food items from Target. It’s less than a mile away, and if I am out of almond milk, I’ll get it there rather than travel a longer distance. Sometimes I pick up a bottle of wine.
I’ve never done a full grocery shopping, however.
I’ll bite. It’s significantly more convenient than most of the other options, has less dregs than a Walmart does, and tends to contain most of the crap that trader joes doesn’t.