Wal-Mart and Target each came out this week and restated that they were going to open new units in urban areas that have a smaller format. Let’s cut to the chase, research shows the center of the store is dead! Consumer are focused on prepared food, fresh prepared with fast service.
Try as they might category managers have only delayed the inevitable they have not been able to prevent it. Look how well category managers have done with A & P. Companies that have relied on slotting fees as a solution for profits simply have lost sight of reality. Super Target are going to have “wider aisles” and we all know why; they have too much stuff and the consumer simply walks by it!
Target’s will “increased fresh food selection is designed to make fill-in shopping "quick and easy for guest’s on-the-go." Each store offers a selection of national food brands and Target private-label brands.” Wal-Mart understands the same thing. It’s not about the cost of the land, it is about the consumer. I am glad to see that each of these successful retailers is listening.
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