Target Serves Up Grocery Savings In Direct Mail Piece

Target is focusing on its expanded grocery sections in remodeled stores and SuperTargets in a direct mail piece being sent to customers in select areas.

The 10-page glossy includes recipes that consumers can make using products available in the Target grocery aisles. It also includes a fold-out with coupons for items such as Kraft cheese, Oscar Mayer lunchmeat, Bertolli frozen skillet meals and Classico pasta sauce. A plastic peel-off coupon for $5 off any grocery purchase of $25 or more is placed on the back cover.

Citibank Smith Barney analyst Deborah Weinswig said in a recent research note that Target's increased assortment of prepared foods, recipes for quick meals and wine "should help boost Target's image as a food destination."

The front cover of the direct mail piece features an excited young boy with a spoon up to his open mouth. The headline "Hello goodbuy" is followed by the copy "Bottomless pit. Endless meal solutions."

The first two pages talk about the expanded grocery offerings. The copy, "Out of everything, including ideas? Say hello to your new Target," is superimposed over an empty plate with a fork on the edge.



Copy on the following page includes: "Your Target store has more food than ever before. The grocery department has been completely remodeled and expanded, which means you'll find more dinner solutions than you ever imagined--all at low prices you've come to expect. We got many of the big names you know and love, plus exclusive brands like Market Pantry that are sure to become family favorites. You'll even discover a surprising selection of premium foods, inspiring appetizers and ready-made entrees that are guaranteed to make every meal special--all for less." The theme throughout the piece is "Eat Well. Pay Less."

Of its 1,600 total stores in 47 states, the company currently has 182 SuperTarget stores in 21 states. Target President Gregg Steinhafel told analysts earlier this year that the company planned to open 30 to 35 new SuperTargets in 2007. "All of our stores in '07 will have an expanded food presence. Whether they are Super Target or a general merchandise store, they will have essentially the largest footprint of food that we have gone to market with," he said. "All of our remodels will similarly have that expanded food footprint."

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