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Target plans grocery tune-up

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MINNEAPOLIS — Target Corp. is set to start remodeling 30 of its stores in the Dallas-Fort Worth area to reflect changes in the retailer’s new grocery strategy.

Dallas is the only market that’s getting a major grocery overhaul for now, the Dallas Morning News reported last month. The changes, which include new lighting, fixtures and signage, are aimed at making the grocery department look more like a grocery store and to communicate the message that produce is fresher and the department is more attuned to what shoppers want, according to the newspaper.

Target has also been building dedicated grocery teams and hiring regional leaders to execute strategy changes that the company said flowed out of the experimental “LA25” pilot program it recently launched to introduce about four dozen enhancements it has been testing to 25 stores in Los Angeles.

Some enhancements were made to the grocery aisles.

Target executives have gauged the power each enhancement has on shopper experience and sales. Collectively, the enhancements are focused on either store presentation or service.

Target chairman and chief executive officer Brian Cornell told analysts in New York in March that the company was rolling out major changes that would make shopping easier, less frustrating and more convenient. As part of the revamp, Cornell said Target intended to “transform virtually every element of the [grocery] business,” and that shoppers could expect more organic products and fresh produce as well as new displays to draw shoppers to the grocery aisles.

Target’s grocery sales declined during the second quarter, a period in which its comparable-store sales dipped 1.1% from the preceding year. Grocery was identified as an area in need of improvement. Cornell last month acknowledged that Target does not want to become a full-service supermarket, noting that groceries are not on the list of key categories (style, baby, kids and wellness) he has identified as the main drivers of Target’s innovation and growth.

But Target is hoping that once inside the store to pick up the latest LEGO set or pillowcases and sheets from the newest Nate Berkus collection, shoppers might also be enticed to take home something for that night’s dinner.


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