Sometimes, people are confused when I use the term SuperTarget. This is because SuperTargets, unlike WalMart SuperCenters, are not yet commonplace across the nation. There are only a little over 200 SuperTargets across the nation. (Incidentally, one of the first ones were built right here in the little town I live in back in 1995.)
Target operates four store formats (exclude one-off urban stores). They are Targets, Target Greatlands, PFresh Stores, and SuperTargets. These are listed in order of their grocery offerings. Targets have very limited grocery offerings, and are generally the smallest in size. Greatlands have more offerings than the basic Targets. PFresh Store format is Target’s newest, currently being rolled out. These stores would focus on Target’s private label brands. SuperTargets offer Target shoppers the widest variety of grocery items. As you can see in the video above, they basically fit a grocery store inside a Target store. These stores are very large, and is the epitome of one stop shop for the savvy Target shoppers.
The threat from Target, unlike Walmart, is not generated through scale. As mentioned above, SuperTargets are not commonplace, and there is unlikely one right around the corner from your everyday grocery stores. However, Target is very good at attracting a specific segment of shoppers via their product offering. Their private label commands a following that warrants a new store format! These shoppers may not go buy meat and fresh vegetable every week. But they pick up cookies, ready-to-be-microwaved meals, etc. that are widely available at many Targets across different store formats. And they are picking up their favorite brand – Archer Farm, the private label brand available only at Target.
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