Blue Circle - A Smarter School of Fish - Clean ingredients, delicious bites
Shape the Future of Food: Winter Fancy Food Show
Target Announces 4B-Dollar Investment

Target Announces 4B-Dollar Investment


MINNEAPOLIS, MN
Wednesday, March 10th, 2021

Target is one retail store where I admit I have bought more than I intended. Now, the retailer is aiming to make it more difficult for its other shoppers to leave the store without a full cart. Target is staying fresh in the retail game as it announced its latest plan to implement $4 billion investments annually for the next several years in the expansion of its operations. These investments will go toward new store openings, remodels, enhanced fulfillment services, and strengthen its supply chain as it provides guests with a safe, easy, and convenient shopping experience.

Michael Fiddelke, Chief Financial Officer, Target“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. “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.”

Throughout the pandemic, guests have turned to Target for its multi-category assortment of owned and exclusive brands, national brand favorites, and brand partnerships. As the pandemic drove consumers to embrace same-day delivery services and online ordering, Target is looking to make the fulfillment options even easier and more convenient in 2021. According to a release from the company, the enthusiasm of consumers toward the addition of fresh, refrigerated, and frozen food to its Drive Up and Order Pickup has influenced the company to increase the assortment of fresh and frozen food available for pickup.

Target recently announced its latest plan to implement $4 billion investments annually for the next several years in the expansion of its operations

Technological improvements will also be implemented to offer Drive Up shoppers a more personalized experience through the Target app. This includes informing associates where to place orders within shoppers’ vehicles and authorizing different guests, such as family members, to pick up orders.

Following 30 store openings in 2020, including adding a record 29 new small-format stores in a single year, Target plans on accelerating store openings, planning to open 30–40 new stores each year to meet community demand. The retailer will be opening more small-format stores to reach new guests in urban centers and near college campuses as well. To accommodate dense suburban areas, the retailer will be filling gaps with its moderate-sized stores to fit the needs of the surrounding areas.

Target is expecting to quicken its store remodel program as well and is planning on completing close to 150 stores in time for the holiday season, with plans to remodel over 200 stores by the beginning of 2022. New designs will focus on convenience and safety and will implement more contactless features, updates, and same-day fulfillment.

The annual investments will go toward new store openings, remodels, enhanced fulfillment services, and strengthening the retailer's supply chain

To enable Target to expand its fulfillment operation capacity, the company is testing new facilities in Minneapolis, which will also be a part of the $4 billion investment. Referred to as the sortation center, the operation will be the first of five expected to open in 2021.

In addition to the sortation center, Target also expects to open two new distribution centers this year—one in Delaware and the other in Chicago. Two more are expected to open in 2022 to support the east and west coast demand.

A long list of changes is ahead for the retailer. How will the retail landscape change as Target refocuses its aim on shopper retention? Deli Market News will continue to report.

Target
Topics: