I finally got a chance to visit the new grocery store that opened quietly earlier this year - the one inside of Target at Vintage Oaks. I expected to find an expansion of their existing packaged food section with some added fresh food and baked goods. But they have totally moved the food section to one side of the store so it more resembles a market. The expansion is part of a nationwide roll out as Target continues to battle Wal-Mart for market share.
The grocery section was larger than I supposed, with some 10,000 - 12,000 square feet dedicated to food, and set out along 10 short aisles at the far end of the store. The design was as expected, with clean, simple signs, bright displays and well-stocked shelves .The product mix was also simple, based around packaged goods and mass-market brands. Target's own brands were also on display: Market Pantry is their discount brand, while Archer Farms is the premium alternative. The fresh food section (photo above) was quite small. As you would expect from Target, the emphasis is on price and convenience. There was a lot of processed food on display, though I didn't spot the wall of shredded cheese.
I can't see many people using this as their main grocery store. Traffic was light, with 10-12 people shopping the grocery section. Target is clearly relying on the convenience of picking up some cheap groceries while shopping for other household goods or clothing to make this a productive use of space.