The Retail Grocery Landscape Is Changing And Will Continue Change

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i. Future objectives The retail grocery landscape is changing and will continue to change. Retailers no longer expect shoppers to come to them, they must go to the shoppers, especially when Millenials are the shoppers of the future with a multitrillion-dollar opportunity for the grocery industry by 2020 (Guskey, 2014). Costco, the warehouse giant, knows that store expansion is a surefire way of reaching out to a greater number of customers. In 2013, Costco said it wants to open 150 new warehouses over the next five years, including 55 in the U.S. and the rest between Canada and other international as well as un-entered markets (Basu, 2014). Target, another key player in the industry plans to double down on just a handful of departments …show more content…

Their membership format is an integral part of their business model and has a significant effect on profitability. This format is designed to reinforce member loyalty and provide continuing fee revenue. The extent to which Costco achieves growth in membership base, increase the penetration of the Executive members, and sustain high renewal rates, materially influencing profitability (Yahoo finance, 2014). Target Corporations current strategy for 2015 includes opening 15 stores, including three distinct store formats: eight Target Express locations, one city Target and six general merchandise stores. Target’s strategic store growth is focused on reaching guests in urban centers with new formats like TargetExpress and City Target, while also offering new experiences, merchandising layouts and innovations in its general merchandise stores. As well as going towards the online shopping they have announced in February 2015 that, effective immediately, all online orders of $25 or more qualify for free shipping, with virtually no exclusions. iii. Assumptions The warehouse giant Costco assumes that it will continue to do well driven by its growing membership base, global expansion and higher online sales. However, domestic expansion is gaining momentum. Even

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