A simple online strategy – Food

The only thing that you can’t get cheaper online is food.Rich Yamarone comments on this trend in a Bloomberg Insight (via John Mauldin):

Walmart continues to perform much better in the grocery aisle than in its apparel and footwear section. They are very much aware of how critical grocery items are to the consumer.

“Our expansion of frozen and refrigerated product continues. We installed freezers and coolers in 127 stores in the first quarter and now offer frozen and refrigerated product in 2,345 stores. We are planning approximately 325 installations for the full year. This important category is extremely productive.”
—  Dollar Tree CEO Bob Sasser:

“We also completed more than 100 remodels, resulting in nearly 1,000 general merchandise stores that we’ve either opened or remodeled in the last four years. This means that even though we’ve reduced new store growth in response to the recession and resulting slowdown in commercial development, our store base is much fresher than before the recession began. Guests in these stores respond to the appealing environment by spending more at Target, as we capture more of their shopping trips. While the most visible change to these stores is the addition of a broader food assortment, including an edited assortment of perishable items, guests also respond to enhanced navigation, compelling visual elements, and our latest thinking in beauty, shoes, home, apparel, and baby.”

— Target CEO Gregg Steinhafel:

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