MINNEAPOLIS, March 3, 2020 /PRNewswire/ -- Target
Corporation (NYSE: TGT) today provided an update on several
initiatives as part of its multi-year strategy. This includes the
addition of fresh grocery and adult beverages to its Drive Up and
Order Pickup services, new milestones for its small-format and
remodel programs, and updates to the retailer's supply chain
transformation.
"Target is winning in the marketplace because of our
differentiated investment strategy, durable financial model and our
team's incredible work in reinventing the Target run to deliver a
shopping experience like nothing else in retail," said Brian Cornell, Chairman and CEO of Target. "As
we look to 2020, we'll continue to elevate our popular same-day
services and expand our ambitious small-format and remodel programs
to create an even easier and more convenient experience that
inspires our millions of guests to keep shopping Target in new and
different ways."
Enhancements to Same-Day Services
In 2019, Target offered guests more ease and convenience with
Drive Up, which saw sales growth of more than 500 percent, and
Order Pickup, which saw sales growth of nearly 50 percent. In 2020,
Target will enhance these industry-leading same-day services by
offering an assortment of fresh grocery and adult beverage items
via Order Pickup and Drive Up fulfillment. Guests will be able to
order popular grocery items such as milk, eggs, bananas, and more,
and have their items delivered directly to their car or ready to
pick up at a Target store. Testing will begin in Minneapolis-area stores in the spring, with
plans to expand this service to nearly half of Target's stores in
time for the holiday season. Target also will test adult beverage
fulfillment through Order Pickup and Drive Up in more than one
hundred stores in Florida and
Oregon this spring, with plans to
expand the service to the majority of its stores by the holiday
season.
Record Small-Format Openings
In 2019, Target's small format stores contributed more than
$1 billion in total sales. Following
the opening of its 100th small-format store last year,
2020 will be the biggest year to date for Target's small-format
expansion, with nearly three dozen new stores. Throughout 2020,
Target will be adding Drive Up to dozens of small-format stores
across the country that have parking lots, making it even easier
for guests to shop. Target will also begin exploring sites for
stores that are approximately 6,000 square feet – roughly half the
size of its smallest small-format store – reaching even more guests
in urban neighborhoods and on college campuses. The first store
lease is expected be signed in 2020, with an opening date in
2021.
New Milestones for Remodel Program
Target remains on track to complete more than 1,000 store
remodels nationwide by the end of 2020, with plans for about 300
remodeled stores this year. The average sales lift of a remodeled
Target store has been in the range of 2-4% in year one, with an
average of more than 2% in the second year.
As part of its remodel program, Target will test a new
front-of-store layout that creates an even more welcoming first
impression, with fresh flower displays, a curated product
assortment, and lower walls and counters to make it easier for team
members to offer helpful service to guests. Target will also
introduce a transformed electronics department in 200 stores this
year, followed by 200 more stores in 2021. The new experience will
create a more inviting destination, offering a compelling showcase
for top brands and dedicated spaces for the retailer's trained tech
consultants to assist guests in discovering the right products for
their needs.
Continued Supply Chain Transformation
To increase the speed and efficiency of its supply chain, Target
will begin scaling robotics solutions that have been in development
and testing across the country to replenish inventory to hundreds
of stores by the summer of 2020. The technology enables precise
sorting on an aisle-by-aisle basis to help store team members fill
shelves easier and faster while reducing backroom inventory. In
2020, Target also will open new warehouses near key markets,
including New York and southern
California, to more efficiently
replenish stores in high-volume areas.
About Target
Minneapolis-based Target
Corporation (NYSE: TGT) serves guests at more than 1,800 stores and
at Target.com. Since 1946, Target has given 5% 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