An analyst report on last week stated that Target trails its competitors in the grocery business, and that although the company’s grocery share will continue to rise, it will be at a slow pace.

According to the report, Target earns less than one-fourth of its revenues from food and consumables, and has found it hard to attract grocery customers due to competition from Walmart, “its cheaper counterpart.” A recent study by Kantar Retail said that a basket of goods at Walmart was about 4% cheaper than a similar basket at Target, which relies on “specific and occasional” discounts, rather than providing everyday low prices like Walmart does.

As of early 2013, about 1,100 Target stores had a P-Fresh food section, and about 250 stores had full-line grocery items. The P-Fresh concept, introduced in 2009, includes an expanded fresh food layout located in a prominently visible location, displaying frozen and dairy products, perishable items, snacks, beverages and other grocery items.

At the start of the program in 2009, groceries contributed about 16% to Target’s overall revenues, compared to 23% in 2013. The report on suggested that the company’s share may increase to 24-25% over the next four or five years, but will remain significantly below Walmart’s 55% share.