Target Looks to Partnerships for Fresh Food

The discount retailer has been discussing how to have a better fresh food supply chain.

November 06, 2015

MINNEAPOLIS – Target Corp. has its eyes on partnering with companies to provide more consistent fresh food to its stores, Reuters reports. “There is an opportunity to use some partners who may be able to do things a little bit better,” said John Mulligan, COO of Target.

Because the store’s supply chain was cobbled together as the discount retailer grew its fresh food offerings, the system needs overhauling to avoid shortages and other problems that have plagued the edible food part of the store lately. Mulligan said that while the company has upped food sales by focusing on healthy food trends, the fresh food supply chain has fallen short in many areas of the United States.

Target’s goal is to become more competitive with Walmart and Amazon.com without dotting the country with distribution centers and warehouses. “We will not be building $200 million fulfillment centers all over the country,” he said.

The move comes as other grocery retailers are ramping up online delivery programs. Sales from online grocery sites are forecast to reach $13 billion this year—a more than 16% jump, according to IBIS World research. Read more about store-to-door delivery in the September issue of NACS Magazine.

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