Target to Open More Small Formats, 'Reimagine' Existing Stores
MINNEAPOLIS — Target Corp., which posted disappointing sales for three straight quarters in 2016, has plans to open new stores and improve its existing locations.
Target CEO Brian Cornell outlined the retailer's plans at a recent financial community meeting, stating that the chain is "investing more than $7 billion in capital over the next three years, and about $1 billion in annual operating profits beginning in 2017." Its aim is to speed up sales growth, gain market share, and adapt to customers' changing preferences.
By 2019, Target wants to open 130 small-format stores, 30 of which are expected to open in 2017. Cornell explained that the compact stores will help Target "reach guests in areas we couldn't before, and connect with college students at a time when they're developing brand preferences."
"Our stores continue to play a critical role as places guests go to discover and be inspired," the chief executive said, noting that Target also plans to "reimagine" 600 of its existing 1,800 locations throughout the United States.
As for its grocery business, Target's goal is to continue making improvements in its stores, while recognizing that it is not a full-service grocer. Instead of endeavoring to compete with full-service grocers, Target will focus on playing up its strengths as "a great self-service convenient experience," according to Cornell.
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