Following impressive fourth-quarter results that saw comparable-store sales grow more than 20%, Target is moving forward with a multi-billion dollar investment plan.
The Minneapolis, Minn.-based retailer said it would spend $4 billion in the coming years as it scales capabilities across the company. This includes new store openings and store remodels, enhance fulfillment services and strengthen its supply chain.
“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 for Target.
Building off the 30 store openings in 2020, including 29 small-format locations, the retailer plans to accelerate that pace this year. Target is looking to open between 30 and 40 stores annually to meet community needs in urban centers, college campuses and densely populated suburban cities.
In urban centers such as New York City, Los Angeles and Portland, Target will open more small-format stores to reach new shoppers. In dense suburban areas surrounding cities such as Denver or Brooklyn, the company 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 the University of Michigan, the retailer will open new small-format stores to introduce its unique shopping experience to new, college-aged guests to form lifelong relationships.
Target also 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.
The company is also planning technology improvements that will 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.