Christmas Ad Space Allocation for ProduceTarget Versus Key Competitors

Target Versus Walmart – Space Dedicated to Produce

• Walmart increased its exposure to Produce and had more exposure than Target in 2013:

Source: Market Track

2012

2013

2012

2013

Core Competitors – Space Dedicated to Produce• Since traditional grocery retailer’s Ads are so different from Walmart and Target, the best way to measure the

“importance” of Produce is to gauge it based on its exposure on Front Page:

– Was it on the Front Page?

– Was it the prominent department?

– What was the % of space?

– Did Produce exposure increase YOY?

• Based on the Christmas Ad, all retailers showcased Produce on their front page, the majority of them had it as their prominent department, and 6 out of 8 increased their exposure for Produce in 2013:

HEBCubKing SoopersKrogerSafewayTom ThumbMeijerPublix

2012

2013Front Page? Prominent? % of Front Page Exposure Increase?

Yes 50%40%30%25%20%20%20%20%

Source: Market Track 2014

YesYesYesYesNoNoNoYes

YesYesYesNoYesYesNoYes

• Target has the lowest % of space dedicated to prominent placement among all retailers and has 3X less than Walmart

• All retailers increased their prominent exposure on Produce items except Kroger, Cub, King Soopers and Target

Prominent Standard Line ListingPublix 27% 55% 18%Meijer 24% 67% 10%Kroger 18% 74% 8%Walmart 15% 74% 12%Cub 14% 76% 11%HEB 10% 88% 2%Safeway 7% 82% 11%Tom Thumb 7% 90% 3%King Soopers 7% 80% 14%Target 5% 74% 20%

Source: Market Track Jan-July 2014 & Arrows represent increase or decrease vs. 2013 in % of Prominent space

2014 YTD Space Prominence by Retailer

Prominent Placement: Front Page, Insert, Front Gate or Larger Footprint of Space

Standard: Regular sized imaging among regular placement in ad

Line Listing: Typically text only, image only or small footprint of space

Prominent Placement Examples