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The Minneapolis Star Tribune reports that Target Corp., in an effort to ramp up its competitive position compared to Wal-Mart, has decided to “incorporate larger food sections into most of its 1,239 discount stores. When the renovations are complete, Target's stores will have as much as 50 percent more space for food than is typical now.”

In addition, Target plans to increase the assortment of ready-to-eat food available in its supercenters.

According to the paper, “Target President Gregg Steinhafel said all new Targets will be built according to a new prototype dubbed ‘P2004,’ which includes general merchandise and a broader mix of groceries. Target has introduced elements of the P2004 concept into nearly half its stores, and the company has said it will convert up to 300 more during the next two years.”
KC's View:
It is interesting that analysts with whom the Star Tribune spoke seemed to worry that if people start coming to Target for food products, they may be tempted to stop buying higher margin nonfood items there…when in fact, Wal-Mart has used the lure of food to generate more traffic and, in the end, more nonfood sales.