Target to remodel 340 stores in 2010
By Staff -- Playthings, 1/21/2010 10:11:00 AM
MINNEAPOLIS—Target today announced an immediate store remodeling effort as part of a longer term strategy for fostering future growth.
The retailer, speaking in advance of a planned meeting with members of the financial community, said its growth plans for the next 5 to 10 years would involve:
• Continued growth within existing stores, achieved through a "substantial" store remodel effort that will see approximately 340 existing locations revamped in 2010, at a cost of approximately $1 billion. The remodeled locations would incorporate new merchandising initiatives, including “expanded grocery content in general merchandise stores; and enhanced layout, assortment, and in-store experience in a variety of other merchandise areas including Beauty, Home, Electronics and Video Games.”
• Development of “a smaller store format with an edited merchandise assortment" for dense urban markets and that fits within the real estate constraints of such areas. The retailer plans to test the concept “within the next few years.”
• Expansion outside of the United States, with initial growth most likely in Canada, Mexico or Latin America beyond a 3- to 5-year horizon.
• New construction of traditional Target store formats in existing trade areas. Target's plans include fewer than 10 additional locations in 2010, net of closings and relocations, with the opportunity to increase that number in 2011 and beyond.
"As we approach each of these growth opportunities, Target will apply the same rigorous financial discipline that we have applied historically, ensuring a returns-based approach and the prudent use of capital," said Gregg Steinhafel, Target’s chairman, president and chief executive officer. "We are excited about the growth potential for Target and believe we have the capital, talent, and right blend of discipline and innovation to deliver meaningful value to our guests and shareholders."
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