Why Does Target Sell Groceries?

I was in Target today and for some reason I began to wonder why they have groceries. I've known for years that they sell groceries, but today it really seemed to bother me. Target is known for cheap but classy. They have found a way to compete with WalMart and I'm guessing they have slightly better margins. Groceries have very low margins. So what gives? I rarely see anyone buy the groceries there. Does anyone actually say "Hey I need milk, let's stop by Target?" They don't offer enough groceries to do all your shopping there, so why not free up that space for more merchandise?

I did make a mental note that with the exception of milk, they don't stock anything with a short shelf-life. And most of what they sell (milk, soda, frozen pizza, etc) are things someone might run out of midweek, that aren't worthy of a full grocery trip. So maybe that's the idea. But still, does that do enough for them financially that it's worth stealing space from the regular merchandise?

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  1. lily's Gravatar Comment by lily on February 5th, 2008 at 8:32 pm

    I actually really like getting groceries at Target. Its not as cheap as walmart but they have different things that you wont find at walmart. Like Archer farms and Bear Naked Granola and Amy’s organic frozen dinners and other really good foods. They are unique and really good.

  2. Mousey's Gravatar Comment by Mousey on October 12th, 2009 at 11:45 am

    I love shopping for Groceries at Target. As it is, we go to several different stores for our weekly items- but this way we get them waaayyy cheaper at target. Like Lily said- they have things other stores do not. I love the Archer farms products as well. I get Milk, Cheese, Cereal and other small items I would use as ingredients in my cooking there. We rarely spend over 40 dollars for a few grocery bags full of food. Target, Combined with Trader Joe’s has saved me thousands of dollars over the years.

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