Target Corp. (Minneapolis) plans to add 20 new stores and renovate 175 existing ones this year as part of its effort to offer a differentiated shopping experience. The retailer unveiled those plans at its annual Financial Community Meeting in New York.
Overall, Target plans to invest $4 billion to $5 billion this year to expand its guest-centric services, operations network of stores and supply chain facilities, digital experiences and other capabilities. The retailer also shared more about its plans to advance its enterprise efficiency efforts, aimed at optimizing its operations after years of rapid growth.
“Investments in our shopping experience and front-line team have deepened our guests’ engagement with Target during the last few years, which is reflected in our continued traffic and sales growth,” said CFO Michael Fiddelke. “This year, we’ll continue investing in our long-term strategic initiatives that propel our market share and profit growth over time. Coupled with our teams’ ongoing efforts to scale our business with greater simplicity, we are confident in our ongoing ability to meet the evolving needs of our guests and deliver value for our shareholders.”
As part of those initiatives, the retailer detailed plans to deliver “affordable joy” to its shoppers by launching or expanding more than 10 owned brands and appealing to value-conscious consumers with more items starting at $3, $5, $10 and $15.
As for its brick-and-mortar initiatives, Target said it plans to open about 20 new stores in a variety of sizes as it seeks to reach new guests. Many of the new stores will include new design elements that reflect the local community, experiences that highlight new brands and sustainable features.
The retailer is also making investments in about 175 of its 2000 existing stores, ranging from full remodels to the addition of Ulta Beauty at Target or Apple at Target shop-in-shops, or expanded capacity for same-day fulfillment services.