In a recent interview for USA Today, Jayne O'Donnell asked Target CEO Gregg Steinhafel to describe the PFresh concept. Here's what Steinhafel had to say.
"PFresh is a comprehensive remodel within our stores' environment that does a number of things. It adds a much larger assortment of dry, dairy and frozen, then we add fresh perishables to the grocery mix, which is something we haven't had in the past. While we're in and remodeling, we update the entire store and add new visual elements throughout, update apparel racks, add a new shoe area, add new beauty and skin care areas and update our electronics area. Essentially, when we're through with the remodel, we have a brand new Target store. We're transforming the experience in these stores so that we can provide a more comprehensive one-stop destination. We didn't have a broad enough assortment of groceries. Our prices are ultra-competitive, and in most cases, they are below the local grocer retail prices."
As for new stores, Steinhafel expects 20 (net 15 with closings and relocations) this year.
Previous blog posts about Target:
Target has big increase in grocery sales (5/6/2011)
Target sets more food expansion (2/25/2011)
Target's grocery format is gearing up for growth (1/4/2011)