Grocery sales propel Target growth

Target is still the home of cheap-chic blowout sales such as last year's Missoni collection, but as this article from Minneapolis points out, it's a shift to far more prosaic items that's fueling the mega-retailer's growth.

The push to increase the number and types of fresh groceries and food in Target stores (initially called "P-Fresh")appears to be paying off. Target has been renovating hundreds of its stores, adding more produce and increasing the amount of floor space devoted to consumable goods.

The retailer completed making over its Charlotte-area stores last year; here's an article from last year with a price comparison between Wal-Mart, Harris Teeter and the new Target groceries.

As the Star-Tribune article points out, non-discretionary items (household goods and food) have gone from 39 percent to 44 percent of total sales at Target since 2009. That means more people are doing their shopping for necessities at Target.

The theory retailers are operating under is that groceries and other consumable goods drive frequent trips to the store. You might buy a shirt or other clothing once a month, but you probably go to the grocery store at least once a week. So, even though groceries tend to have a lower profit margin than other items, they generate more store traffic. Having more groceries can thus equal getting more money out of your existing customer base - and maybe, while picking up bananas and milk, they'll buy a scarf or set of plates that catches their eye.

Target isn't the only store to take this approach. Notably, Matthews-based Family Dollar has been ramping up the amount of floor space devoted to food, which has been a big contributor to the chain's recent growth.

Target, Macy's and Kohl's to open at midnight on Black Friday

Add three more retailers to the ranks of those hit by Black Friday Creep: Target, Macy's and Kohl's will both open at midnight the day after Thanksgiving for the first time this year.

No longer is lining up at 4, 5 or 6 a.m. for Black Friday deals enough. Store opening times have edged earlier over the past few years, with many retailers opting to open their doors the minute Thanksgiving officially ends.

Some retailers have pushed even earlier. Last year, Sears and Kmart were open on Thanksgiving day itself for the first time, and Toys "R" Us opened at 10 p.m. on Thanksgiving.

"The holidays bring hectic schedules and tight budgets, so extending store hours and offering lots of additional ways to save makes Target a great choice,” said Tina Schiel, Target's executive vice president for stores, in a press release. Target will also have longer hours the day before and after Christmas this year, the company said.

Target is also experimenting in Denver with having stores open from 8 a.m. to 2 p.m. Thanksgiving day, according to reports.

Macy's CEO Terry Lundgren said in a statement that Macy's decided to open earlier this Black Friday (most stores opened at 4 a.m. last year) "in response to our customers’ eagerness to shop early for great deals."

Kohl's also said this week that it will be open from 12 a.m. Friday, Nov. 25 to midnight the following day, doing business for the full 24 hours following Thanksgiving. This will be the retailer's earliest opening ever on Black Friday.

Retailers are competing for shoppers' dollars this year as unemployment remains high and calling the recovery "weak" sounds generous. Most forecasts have called for moderate growth in consumer spending this holiday season compared to last year, though none have predicted anything spectacular.

Black Friday (which got its name, at least apocryphally, by being the day retailers went from being in the "red" to the "black"), is often, but not always, the single biggest day for consumer spending. Last year, Black Friday sales edged up less than 1 percent, to about $10.7 billion.

How early is too early? And what's the earliest you'd go to a store and line up for a Black Friday deal?

Note: Post updated to reflect Kohl's opening