SOURCE:3BL Media, LLC
DESCRIPTION:
You may have noticed that organic food and products have expanded from specialty stores into the aisles of mass-market retailers and supermarkets. And you may have noticed that some of these products have moved out of special sections within those mass stores onto shelves next to mainstream products, directly competing for consumer dollars.
The data tells the growth story: the organic industry grew 10 percent from 2011 to 2012. It has grown to $31 billion in sales in 2012 from $8 billion in 2002, according to the Organic Trade Association. Now, Target is expanding its product mix of organic, natural, and sustainable goods to meet this growing consumer demand. Under a new category of “Made to Matter,” Target will offer over 120 new products from 17 brands whose goods are already instore, such as Seventh Generation, Kashi, and Burt’s Bees. And Walmart has announced that it will price its Wild Oats organic products at the same price as similar, non-organic brand name items, offering a discount of up to 25 percent off the premium for organic.
These efforts mark a new path toward new revenue in the ultra-competitive retail sector. Target, Walmart, and other companies making similar, innovative moves are looking for a bigger slice of a rapidly growing pie rather than grinding out incremental market share stolen from competitors through business as usual.
I’m John Howell for 3BL Media.
Video Source: Organic Food Sector Blows up with Moves by Target, Walmart
KEYWORDS:Business & Trade, organic, Target, Walmart, 3bl Media, CST, CSR Minute, Business, Seventh Generation, Kashi, Burt’s Bees