Tuesday, October 26, 2021

The goal is to lower food prices in a competitive trade event

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Customers will be able to shop at the Target Corp store in Chicago, Illinois, USA on Saturday, November 16, 2019.

Daniel Acker | Acesparks | Getty Images

Electronic products, toys and food?

The goal is to focus on the big box retail store as it launches competitive sales events to walk face-to-face with Amazon Prime Day. It is adding discounts and promotions to direct shoppers to cereal, meat and soda drinking corridors.

The goal is to distribute deal days that will compete with Prime Day in 2019, but this is the first time it will use the event to promote food. Its discounts run from Sunday to Tuesday – more than a day before the e-commerce giant’s event.

Today, Target may see the food category differently. During the pandemic, the main reason for Target’s sales growth and its market share growth was food. As people entered the house, the ingredients for dinner, the pantry’s main products, and snacks traveled to the store. The goal began in the early months of the health crisis as he opened his doors by locking in as an important retailer. When rival stores reopened, Target still attracted shoppers with their various merchandise as people combined trips and filled larger baskets.

Even when people make social plans and come back to eat, Target doesn’t let people come back to his food corridors. Over the next few months, whether Target and other groceries can convince people to keep refilling and cooking in the fridge, they even make plans to meet up with friends for drinks or take them to dinner.

Before the pandemic, shoppers in the U.S. spent more money in restaurants and bars each month than in grocery stores. According to the U.S. Census Bureau, the habit of spending more money on food has returned in the last two months. This causes food to compete for a larger portion of the shrinking pie.

Risk during Amazon Prime Day is the level of spending that competes with the busiest days of the shopping season. According to an analysis based on a survey of more than 1,000 consumers conducted by Adobe Analytics, all of last year’s records in the U.S. during the two-day trading event were $ 10.4 billion. and exceeds last year’s cyber Monday. Visitors to U.S. retail sites. According to a Adobe survey, nearly 60 percent of consumers said they plan to shop online during Prime Day.

Retail stores of any size have started to rise in sales as shoppers look and buy more than usual.

Transaction day discounts are common on Target, but it does have a special food-related promotion: when it uses one of the services, such as a checkout, to customers who spend $ 50 or more on food and beverages Distributes $ 10 gift cards. and home delivery service, Shipt. The company refused to exchange certain items for sale.

At least two of Target’s competitors are also scrapping deals to sell food products, such as Walmart and Amazon. Walmart is also adding food products to Deals for Days for the first time, which is its annual sale, a company spokesman said. This lowers the prices of food items such as ribs, watermelon, ice cream and coffee.

Amazon plans to sell some groceries for $ 1, and its wine brand Cursive will go on sale. Whole Foods is offering discounts on seasonal products such as lemonade and Caprese pizza, a company spokesman said.

If buyers benefit, these deals can help companies withstand harsh comparisons throughout the year. All three have increased growth rates, making them hard to compare or beat – especially in the food department where consumers collect items during the pandemic.

Target’s sales last fiscal year exceeded $ 15 billion – more than sales growth over the previous 11 years. The company said its market share for the year was about $ 9 billion, according to the company itself and third-party research.

The company’s shares have risen nearly 31 percent so far this year, with a market capitalization of about $ 114.05 billion.

Target’s comparable sales, which have been in store for at least 13 months and opened online, have grown 19.3 percent in the last fiscal year – far higher than any other major food product. Kroger’s comparable sales grew 14.1 percent, while Walmart’s grew 8.6 percent. The financial years of retailers and the descriptions of comparable sales vary slightly.

Target has also found that combining food products and digital services can increase customer loyalty.

In the fourth quarter, earnings will be called March 2nd, The goal’s financial director, Michael Fiddelke, said shoppers should visit his stores more often, increase spending on food and beverages by an average of 20% to 30%, and take other categories of merchandise from the outskirts or shop. sold more after buying through. take for the first time.

The same-day food delivery service owned by Target will be featured in Shipt’s ad on Saturday, November 16, 2019 at the Target Corp store in Chicago, Illinois, USA.

Daniel Acker | Acesparks | Getty Images

The company also shared that food and beverages accounted for 20 percent of sales during the year, and that sales in this category ranked second among drivers after beauty and home furnishings, which while 26 percent. During the pandemic, the company produced a special brand of newspapers and sweets and gourmet pasta, coffee and other collections.

So far, Target has managed to keep growing. In the first quarter, food and beverages grew by the same numbers from the bottom to the middle, despite comparisons with consumers a year ago when they gathered in their places and found shelter.

The goal is to use food as a differentiator and “defense mechanism” on Amazon Prime Day, said Krishnakumar Davey, president of strategic analysis at IRI market research firm. Over the past year, this has helped Target promote larger baskets and attract new customers, he said.

The goal is to deepen its impact among low-income customers and older buyers, according to IRI’s market research.

It’s also more store trips than competitors in the last few months. As of early June, targeted travel was up 16.1 percent from a year earlier. According to the IRI, which collects consumer data from more than 100,000 households, all peers except Kostko are in low numbers.

Compared to Amazon, the food footprint on Target is huge. Amazon owns more than 500 Whole Foods stores and has nearly a dozen Amazon Fresh stores, its expanding food chain. There are about 1,900 stores on target.

Eating may go backwards, but home food consumption is higher than the pandemic because there are other factors, such as working remotely, Davey said. He also said food sales could resonate more than other deals.

“Everyone needs something – it’s more than an iPad or something,” he said. “It’s a high-frequency element.”

Amazon Prime Day 2021 coverage

Read more about Amazon and others planned for this year’s sales event:

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