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Target Corporation: The Grocery Business in the Bull's Eye
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In May 2016, Target Corporation was one of America's largest retail chains, with nearly 2,000 well-located general merchandise stores and a reputation for being stylish and chic. However, in the wake of the 2008 U.S. financial recession, profitability had weakened as a result of allocating more space to low-margin groceries in an attempt to continue to attract customers. Once the recession was over, Target Corporation had to decide whether to reduce or even eliminate the grocery category in order to offer a broader selection of clothing and household goods.