Wednesday, May 27, 2009

Target announced this week that it is entering the “fresh food” niche. One would suppose that they continue to track Wal-Mart and notice that 50% of Wal-Mart’s sales come from the grocery side. The question is who will be most affected. I don’t think they will dent Wal-Mart they were first and occupy top of mind for the price focused consumer. I don’t I do think that an unintended consequence of this action will be the solid advancement of Convenient Meal Participation. Targets size and history of price competitiveness will put pressure on branded and private label food staples. It is easy to predict then that the opportunity for all other food retailers will be to focus on Convenient Meal Participation; specifically ready to eat and ready to heat! Grocerant food will continue to grow and define the success of traditional convenience stores operators, grocery stores operators and restaurant operators. Who do you think Target will impact the most by entering the “fresh food” niche?

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