April 11, 2011

Will Target Become Next Kosher Grocer?

New York…A number of kosher purveyors and distributors say they have been talking to Target about increasing their kosher offerings in stores that are in Jewish neighborhoods. This is consistent with reports in such Target stores in Flatbush where kosher has been steadily growing on the shelves. Discount chains have in recent years dramatically increased their kosher aisles with such chains as Costco and Trader Joe’s taking the lead. Wal-Mart too has in many areas added many kosher items. The discounters are becoming much more aggressive in food with many stores doing half of their sales in food. Wal-Mart’s U.S. grocery business generated about $140.6 billion in sales last year, up 2.1% from the previous year. Groceries accounted for 54% of Wal-Mart's U.S. sales in the company's fiscal 2011, which ended Jan. 31st. Kosher industry sources told Kosher Today that there was also a growing interest by the discounters for private label. Currently, Trader Joe’s for example, has many private label kosher items, including meats. It also publishes a kosher list. In areas like Flatbush in Brooklyn, a more aggressive kosher marketing initiative by Target is likely to increase competition, particularly for loss leaders and other basic kosher staples, say the sources. They say that the “one stop” shopping in a kosher independent store may be a thing of the past, although most price conscious stores in Brooklyn shop in stores like KRM and Moisha’s that offer deep discounts on many kosher items.