Is Target a “Threat” to Whole Foods?

There is no doubt that Target is “hot” among a certain segment of affluent shoppers who buy Isaac Mizrahi pants and other “designer” merchandise.

Target’s target audience is the $55,000 to $75,000 income range.

Two years ago, Target started moving in on the organic food market with its Archer Food line, which included whole-grain pizzas and pastas, among other items.

All of Target’s SuperTarget produce departments are now organic.

I recently read an interview with a big investment manager where he said that Target was now a threat to Whole Foods because the rich would simply shop for their organic items in Target.

Where have I heard that before?

Oh yeah- when Safeway was a “threat”.

How about Supervalu and its Sunflower Markets- which the company just shut down?

And remember, Wild Oats? Whole Foods finally bought them last year after kicking their behind for years.

Yes, Whole Foods is pricey (people don’t call it “Whole Paycheck” for nothing.) But what they do, they do right.

They offer tremendous selection and those products are always in great condition.

Whole Foods is an “experience.” Shopping at a massive SuperTarget? Not so much.

I’m not saying Whole Foods isn’t without any chinks in its armour. The company has seen its growth slow in recent months. But it is mainly still an American grocer. The company has only six stores in Canada and six in the UK.

That leaves a large chunk of the world available for expansion. Like Starbucks, don’t count out Whole Foods.