Two retail giants have seen different levels of success when it comes to selling food and fresh produce in particular.
This month Wal-Mart and Target released quarterly results. Wal-Mart showed nice growth of 1.6% for the quarter boosted by fresh food.
Meanwhile, Target struggled, as both total and grocery-specific comparable sales were down, falling 1.1% in the quarter.
One analyst said Wal-Mart has gotten away from value-only appeal and has made gains based on better quality and merchandising. But another criticized it for losing its edge to competitors who beat Wal-Mart on price.
Target executives made some excuses such as â€œfood deflationâ€ and took responsibility, but only in vague terms, for its struggle.
We donâ€™t expect them to lay out all their strategy in a press conference.
An analyst said Target has made little commitment to food and perishables, and it shows. Another said Target is a smart retailer who often finds solutions. He suggested Target should focus on fast-turning items like bananas, apples and oranges.
A smaller part of Wal-Martâ€™s business is in its Neighborhood Market concept, which increased 6.5% in year-over-year growth. This indicates Wal-Mart is closer to the right formula for success and just has to weigh the investment.
Target has made a big splash in perishables in the past, so weâ€™re optimistic it finds the right strategy for selling lots of fruits and vegetables profitably.
But it doesnâ€™t appear it has that focus right now.
Did we get it right? Leave a comment with your opinion.