Advertisement

Target May Outsource Grocery Supply Chain To Third Party

Target is seriously considering entering partnerships with third party companies to shore up the big box retailer’s fresh food supply chain and revamp its grocery business.

John Mulligan, Chief Operating Officer at Target, noted that while the retailer’s supply chain has grown, it has become a patchwork system that isn’t fully reliable.

“There is an opportunity to use some partners who may be able to do things a little bit better,” said Mulligan in an interview with Reuters. “I said to my team this looks like Frankenstein. We have made this thing out of a bunch of parts.”

Advertisement

Although Target has not provided a timeline for any potential partnership decisions, or the names of any third parties, Reuters reported that potential candidates include SuperValu, Merchants Distributors, Inc., Affiliated Foods Midwest and URM Stores. None of the companies have commented on the matter.

Upon appointing Brian Cornell as Chairman and CEO in July 2014 and Anne Dament as its Senior VP of Merchandising in April 2015, Target began the process of realigning its food and grocery business, building more of an emphasis on healthier, organic foods. However, after unveiling a timeline for the overhaul in March that had major changes slated to occur in 2016, Target officials pushed back the rollout to 2017, according to the StarTribune.

 

Featured Event

Join the Retail Trendcaster Webinar Series to uncover key 2025 retail trends, from AI and personalization to social commerce. Gain expert insights, data-driven predictions, and actionable takeaways to stay ahead in a rapidly evolving market.

Advertisement

Advertisement

Retail Trendcaster Webinar Series
Days
Hours
Minutes
Seconds

Uncovering What’s Next in Retail

March 17-19, 2025  |  Free On-Demand Digital Event

Q1 is a pivotal time for retail, with experts analyzing holiday sales and forecasting trends. Join Retail TouchPoints’ Retail Trendcaster webinar series for insights on consumer spending, AI, personalization, social commerce, and more—helping you focus on what truly matters in 2025.

Brought to you by
Retail TouchPoints
Register Now
Retail TouchPoints is a brand of Emerald X LLC. By clicking the button and submitting information, you acknowledge and agree that your information may be shared with corporate affiliates of Emerald X LLC, and other organizations such as event hosts, speakers, sponsors, and partners. Please read our Privacy Policy and our Terms Of Use for more information on our policies.

Access The Media Kit

Interests:

Access Our Editorial Calendar




If you are downloading this on behalf of a client, please provide the company name and website information below: