Target (Minneapolis) unveiled its latest quarterly earnings, which show significant improvements following a $7 billion spending plan to revitalize stores last year.
In February 2017, Chief Executive Officer Brian Cornell announced the plan to remodel 600 stores, open new small-format stores and grow the chain’s private-label brands.
According to Business Insider, at the time, the move was panned by Wall Street. However, the company’s latest quarterly earnings report seem to suggest that those improvements are paying off in traffic and growth.
Its most recent quarter showed a 3.7 percent increase in store traffic, marking the strongest quarterly growth in that area in more than a decade. Same-store sales grew by 3 percent; last year that number saw a 1.3-percent decline.
"The store enhancement program is proceeding well, and refurbished outlets provided an elevated experience which is easier and more pleasant to shop. Displays are more compelling and inspirational, which, in turn, drives purchasing," said Neil Saunders of GlobalData Retail (New York).