MINNEAPOLIS, March 2, 2021 /PRNewswire/ -- Target Corporation
(NYSE: TGT) today announced its plan to invest approximately
$4 billion annually during the next
several years to continue scaling capabilities across its retail
platform. Building on years of sales growth and a record 2020
financial performance, Target will accelerate new store openings
and store remodels, enhance fulfillment services and strengthen its
supply chain as it provides guests with a safe, easy and convenient
shopping experience.
"2020 was a record-breaking year thanks to the work of our team
and their commitment to serving our guests amidst unprecedented
demand. As we head into 2021, we are building on the aspects of our
differentiated model that make Target the preferred one-stop-shop
for millions of guests," said Michael
Fiddelke, chief financial officer, Target. "The bold
investments planned for the next few years will scale key
capabilities across stores, fulfillment, and supply chain to drive
deeper engagement with new and loyal guests, continued market share
gains, and long-term, profitable growth."
Enhancing Fulfillment Services and Store Experience
Millions of guests took advantage of Target's same-day services
for the first time last year, and these fast-growing fulfillment
options will get even easier and more convenient in 2021. After the
enthusiastic response to last year's addition of fresh,
refrigerated and frozen food items to Drive Up and Order Pickup
nationwide, Target will increase the total fresh and frozen food
pickup assortment. Additionally, following a successful initial
trial in hundreds of stores, adult beverage pickup will be offered
in 800 more stores in the next few months.
Technology improvements will also offer Drive Up guests a more
personalized experience in the Target app. This includes informing
team members where to place the order in their vehicle or
authorizing a different guest, such as a family member, to pick up
the order.
Throughout the pandemic, guests have turned to Target for its
multi-category assortment of owned and exclusive brands, national
brand favorites and brand partnerships. The retailer ended 2020
with 10 owned brands generating $1
billion or more in annual sales each, four of which
surpassed $2 billion. Target will
continue to bring brand partnerships to life in stores and online
with the opening of approximately 100 Ulta Beauty at Target
shop-in-shops in 2021, with plans to add hundreds more over time.
Building on its more than 15-year relationship with Apple, Target
has introduced a new Apple shopping destination online and in 17
stores, with an extended assortment, expanded footprint and service
enhancements. More locations are scheduled to roll out this
fall.
New Store Openings & Remodels
Following 30 store openings in 2020, including adding a record
29 new small-format stores in a single year, Target plans to
accelerate the pace and open 30-40 new stores each year to meet
community needs in urban centers, college campuses and dense
suburban cities across the country.
In urban centers such as New York
City, Los Angeles and
Portland, Target will open more
small-format stores to reach new guests. In dense suburban areas
surrounding cities such as Denver
or Brooklyn, Target has identified
sites for new mid-size stores to serve new guests that fill retail
gaps. Across college campuses, including the University of Georgia and University of Michigan, Target will open new
small-format stores to introduce its unique shopping experience to
new, college-aged guests to form lifelong relationships.
Target expects to accelerate its store remodel program this year
and complete approximately 150 in time for the holiday season, with
plans to remodel more than 200 stores a year beginning in 2022. The
future store design will focus on safety and ease, with additional
contactless features, updates that facilitate same-day fulfillment
and more room for social distancing.
Last-Mile and Replenishment Capabilities
To add capacity to Target's fulfillment operation and further
scale its stores-as-hubs model, the company is testing a new type
of facility in Minneapolis called
a sortation center and expects to open five more in 2021.
With this new last-mile capability, the sortation center
collects online orders from local stores multiple times a day and
sorts them into efficient routes for carrier delivery. This pulls
the sorting activity out of store backrooms so it can be
consolidated more efficiently at one facility, giving store teams
more time and space to fulfill additional orders, while reducing
the load on external carriers. This process increases store
fulfillment capacity, reduces last-mile fulfillment costs and
speeds delivery to guests.
The company is also making investments in its supply chain
replenishment capacity to support stores' continued growth well
into the future. This year, Target expects to open two distribution
centers, one in Delaware and one
in Chicago. Two more are planned
in 2022 to support the east and west coastal areas.
Miscellaneous
Statements in this release regarding the company's future
financial performance, planned investments in its business,
enhancements to its fulfillment services and store experience, its
brands and brand partnerships, new store openings and remodels, and
its last-mile and replenishment capabilities, are forward-looking
statements within the meaning of the Private Securities Litigation
Reform Act of 1995. Such statements are subject to risks and
uncertainties which could cause the company's actions to differ
materially. The most important risks and uncertainties are
described in Item 1A of the company's Form 10-K for the fiscal year
ended Feb. 1, 2020 and Item 1A of the
company's Form 10-Q for the fiscal quarter ended May 2, 2020.
Forward-looking statements speak only as of the date they are
made, and the company does not undertake any obligation to update
any forward-looking statement.
About Target
Minneapolis-based Target
Corporation (NYSE: TGT) serves guests at nearly 1,900 stores and at
Target.com. Since 1946, Target has given 5 percent of its profit to
communities, which today equals millions of dollars a week. For the
latest store count or for more information, visit
Target.com/Pressroom. For a behind-the-scenes look at Target, visit
Target.com/abullseyeview or follow @TargetNews on Twitter.
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SOURCE Target Corporation