WSJ: Target's food reinvention to spell big changes for some suppliers

MINNEAPOLIS — Target’s leadership has been quite vocal about its desire to reinvent its food business to focus on healthier options and, according to a Wall Street Journal report, that shift is spelling some big changes for several food suppliers.



The WSJ reported that people familiar with the matter have indicated that representatives from several big name consumer packaged goods companies were told that some of their products would be moved to the back burner, as Target works to improve its distinctiveness and increasingly court shoppers who favor smaller, organic and natural brands.



Target has indicated that elevating its “signature” categories —style, baby, kids and wellness — is a core priority. According to Target, signature categories account for $20 billion in sales, representing more than one-quarter of its total sales in the United States. The WSJ reported that food products tied to those categories would get greater resources and attention.



The other categories are “outperform” or “perform.” While the middle category is still a work in progress, the company said that brands that fall into the bottom “perform” category would not get featured as often in circulars or in stores. Such brands may also face greater competition from Target’s private-label brands, the WSJ reported.



Target chairman and CEO Brian Cornell has previously expressed his desire to improve its food business and, in April, the company announced the hiring of grocery veteran Anne Dament as SVP, merchandising. In this role, she will be responsible for leading the strategic repositioning of Target’s food business.