Food Business News - March 22, 2016 - (Page 20)

Target focused on the fundamentals of fresh MINNEAPOLIS - Target Corp. is focused on getting its food business in balance with opportunities for growth, said Brian Cornell, chairman and chief executive officer. "We've done deep dives into the business, and we've been tearing down every category and every process," he said March 2 during a meeting with financial analysts. "What we quickly realized, the deeper we dug, the more fundamental challenges we found. "Looking across categories, we found out our market share was out of balance. We were strongest in the categories with the least growth potential. Too much of our assortment is in the center of the store while the true growth opportunities exist around the perimeter. We found we were touching product far too often, driving up operational costs and complicating our out-of-stock position." In 2016, the company will continue to focus on showcasing more organic products and improving the freshness of each store's product assortment. "We are moving through the assortment item by item, starting in the fields and carrying it all the way to the sales floor," Mr. Cornell said. "We are also focused on driving penetration with our own brands, including the newly relaunched Market Pantry. And we brought in a lot of external talent. They are also laser-focused on business basics. They are focused on assortment and pricing and promotion and presentation and they've zeroed in on those key seasonal moments when we absolutely need to shine." He added that initial efforts appear to be reaping dividends as the company's comps in grocery have outpaced the rest of the store in both the third and the fourth quarter of 2015. "It's a big turnaround after lagging our overall performance for several years," he said. "We know grocery is highly complex, but it's also very important to our guests, and there's a ton of work going on right now behind the scenes that you will never see, but we look at each and every day." But the current focus on fresh produce should not be read as an indicator the company is going to expand its fresh food offerings into such categories as meat or seafood, Mr. Cornell said. "We want to make sure that, in food, we are focused on getting the fundamentals right," he said. "We think we can differentiate through assortment. We've also got to be clear about who we are and who we are not, and we are going to be true to the drivers of our strategy and how we differentiate the brand." FBN What's Possible with Tropical TM Bulk Fruit Purees and Juice Concentrates Organic virgin coconut oil lSS(('/-S+&SSlSS(('/-S)(1+SSlSS(('/-S1-+SSl Acerola SlS Açai To see our full line of products, visit today. 20 FOODBUSINESS NEWS ® March 22, 2016

Table of Contents for the Digital Edition of Food Business News - March 22, 2016

Food Business News - March 22, 2016
Chipotle continues to struggle
G.M.O. labeling: Back to the drawing board?
Dairy Business News - Picking the right fruits, nuts and seeds
Table of Contents
Web Contents
Editorial - Food industry faces challenges as obesity rate rises
General Mills invests in organic cottage cheese maker
Natural Products Expo West - When big companies buy small brands
Alexia Foods homes in on hot potato trends
What’s popping at Angie’s Boomchickapop
Four trends driving growth in organic
Kraft Heinz impressing investors
Wal-Mart revamping fresh food strategy
Target focused on the fundamentals of fresh
Science, safety and seaweed
Market Insight - Wheat, corn, soybeans: Which one will lead?
Flavor Trends - Beyond sriracha
Ingredient Innovations - Reducing the ‘ates’ in meat applications
New Food Products
Ingredient Market Trends - Millers forecast soft red winter wheat crop at 362 million bus
Ingredient Markets
Supplier Innovations and News
Ad Index
Food Business in the News

Food Business News - March 22, 2016