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Target aims for millennial snackers

Target is taking aim at young foodies.

The retail giant reportedly plans to expand its offerings in areas such as craft beer, granola, and Greek yogurt. Target (TGT) will move away from packaged and processed foods, according to the Wall Street Journal.

Will Target’s shift toward organic food options bring in more millennials? Yahoo Finance Senior Columnist Michael Santoli thinks it’s a possibility.

“I think this is part of a campaign to freshen up what they offer, to make the store look a little bit different, just make it look a little bit less generic,” he says. “They want to have people feel that they're basically shopping for more than bulk and price. I think this is part of that effort.”

Grocery products currently account for one-fifth of the Target’s (TGT) annual sales. The company’s shift to unique food items will impact the overall shopper experience, Santoli notes.

“I think it’s more about how does a Target shopper feel when they're walking through,” he says. “Do they see additional things to pick up as they walk through the store? That to me is what they're trying to get back, the idea that Target was a little bit extra quality and interesting variety relative to the absolute commodity generic-off.”

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Santoli points out that that Target’s move toward natural and health food won’t affect stores that specialize in organic produce.

“Honestly, I don't think it’s that big a swing to where Whole Foods (WFM) is going to feel this. It’s much more about Target: which foot do they want to put forward?”

Last year Wal-Mart (WMT) announced plans to expand its organic food selection and signed Wild Oats as its supplier. Santoli adds that many large chains are pursuing the natural food trend.

“I would say absolutely, everybody is trying to go in the same direction, which is to seem as if you’re a little bit more youth oriented, not as stale,” he says. “Everyone's trying, it doesn't mean the opportunity is as big as everyone is going to pretend it is right now.”

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