Target’s evolving merchandise mix revealed
Considering how the addition of food at Target and the company’s PFresh remodeling initiative has dominated headlines for the past year, it is somewhat of an eye opener to see the company is really just beginning to scratch the surface in food.
At the end of last year, the food and pet supplies category accounted for 17% of total company sales of $67.4 billion compared with two years earlier when those categories accounted for 15% of sales of roughly $65 billion. That’s according to a category sales breakdown contained in the company’s annual report.
The other major category to achieve growth was household essentials, consisting of pharmacy, beauty, personal care, baby care, cleaning and paper products, which now accounts for 24% of sales compared with 22% two years ago.
The apparel, accessories, shoes and jewelry category has held steady the past few years accounting for 20% of sales last year and the previous two year.
Meanwhile, the hardlines category continued to decline last year and fell to 20% of sales from 22% two year ago. Target defines hardlines as electronics, music, movies, books, computer software, sporting goods and toys. Experiencing a similar drop was the home furnishings and décor category, which ended last year accounting for 19% of sales compared to 21% two years earlier. Home furnishings and décor includes furniture, lighting, kitchenware, small appliances, home décor, bed and bath, home improvement, automotive and seasonal merchandise such as patio furniture and holiday décor.