Retailer to deliver 'affordable joy'
through an unparalleled assortment of owned
brands and a renewed focus on deal-conscious
shoppers
Drive Up Returns rolling
out nationwide starting this spring, adding
more ease to the guest shopping experience
Company to open about 20 new stores
and make updates to about 175 existing
locations
MINNEAPOLIS, Feb. 28,
2023 /PRNewswire/ -- Target Corporation (NYSE:
TGT) today announced its plans for 2023 at the
retailer's annual Financial Community Meeting in New
York, emphasizing its focus on offering a
differentiated guest shopping experience that
will continue to position the company for long-term
growth.
The company plans to invest $4 billion to $5
billion this year to expand its guest-centric
services, operations network of stores and supply chain
facilities, digital experiences and other capabilities. The
retailer also shared more about its plans to advance its
enterprise efficiency efforts, aimed at optimizing
its operations after years of rapid growth.
"Investments in our shopping experience
and frontline team have deepened our guests'
engagement with Target during the last few years, which
is reflected in our continued traffic and
sales growth," said Michael
Fiddelke, chief financial officer of Target
Corporation. "This year, we'll continue investing in our
long-term strategic initiatives that propel our market share and
profit growth over time. Coupled with our teams' ongoing
efforts to scale our business with greater simplicity, we are
confident in our ongoing ability to meet the evolving needs of our
guests and deliver value for our shareholders."
Delivering affordable joy
This year, the retailer plans to launch or expand more than
10 owned brands, bringing thousands of new,
differentiated products to guests at incredible prices.
Additionally, the retailer will appeal to value-conscious shoppers
with more items starting at $3,
$5, $10
and $15. In addition, the
retailer will deepen its focus on offering clear, compelling
promotions, introduce enhancements to its Target Circle loyalty
program and debut a new advertising campaign that celebrates how
Target delivers affordable joy.
Launching Drive Up Returns nationwide
Beginning this spring, Target will expand its latest
offering, Drive Up Returns, which allows guests
to return most new, unopened items within 90 days of purchase
from the comfort of their car — for free. Drive Up Returns
will be available on purchases made through guests' Target.com
accounts. Before heading to their Target store, guests can initiate
a return through a guided experience in the Target app.
Guests then follow the normal Drive Up process to return
their order, and wait in their car for a team
member to pick up and complete their
return.
In addition to making the Target guest experience even
easier, Drive Up Returns brings more efficiency
to the retailer's returns process and reduces expenses
for mail-in returns.
Opening more new stores and updating existing
locations
Target plans to open about 20 new stores in a variety of sizes
as it seeks to reach new guests. Many of the new stores
will include new design elements that reflect the
local community, experiences that highlight new
brands, assortment and services, and sustainable
features. Target is also making investments in about 175 of
its existing stores, ranging from full remodels
to the addition of Ulta Beauty at Target or Apple at Target
shop-in-shop experiences, or expanded capacity for same-day
fulfillment services. These new and updated stores are one way
Target brings new partnerships and the latest innovations
in fulfillment services to guests while also investing in
operational enhancements for its team.
Expanding sortation center network
The company plans to expand its sortation center
network from nine to more than 15 locations by the
end of 2026, which will expand its next-day
delivery capabilities to guests across major U.S.
markets. These specialized supply chain facilities allow
Target to deliver digital orders faster, more efficiently and at a
lower cost, with up to 40% of orders delivered by its last-mile
delivery capability arriving next day. Additionally, these
facilities remove pressure from Target's stores, giving team
members more time to serve guests.
This latest sortation center investment will create
hundreds of additional jobs in major metro areas offering the
retailer's market-leading wages.
Driving efficiencies
to fuel growth
Target also expanded upon its newly introduced enterprise
efficiency efforts, aimed at simplifying its operations and
enhancing its team and guest experience while fueling near- and
long-term growth. While this efficiency work will be a
sustainable, long-term plan, Target's goal is to achieve
$2 billion to $3 billion in cost savings over the next few
years.
To stay updated on Target's strategy and initiatives, visit
corporate.target.com.
Miscellaneous
Statements in this release regarding the company's future
financial performance, planned investments in its business,
enhancement of fulfillment and other operational capabilities, new
store openings and remodels, potential benefits from the company's
enterprise efficiency efforts, and growth of strategic brand
partnerships 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 January
29, 2022. 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 2,000 stores and
at Target.com, with the purpose of helping all families
discover the joy of everyday life. Since 1946, Target has given 5%
of its profit to communities, which today equals millions of
dollars a week. Additional company information can be found by
visiting the corporate website and press
center and by following @TargetNews.
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SOURCE Target Corporation