By Kathryn Hardison

Target Corp. plans to invest $4 billion to $5 billion this year as the retail chain focuses on offering a differentiated guest shopping experience.

The multibillion-dollar investment will go toward expanding its guest-centric services, operations network of stores and supply chain facilities, digital experiences and other capabilities, the company said Tuesday at its annual financial community meeting in New York. Target is also focused on advancing its enterprise efficiency efforts.

In 2023, Target said it will launch or expand more than 10 owned brands to offer new products and appeal to value-conscious shoppers.

The retailer will also expand its drive-up return offering this spring, which allows guests to return most items from their car.

The company said it will open about 20 new stores and make investments in roughly 175 of its existing stores. It 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 across major U.S. markets.

Over the next few years, Target's goal is to achieve $2 billion to $3 billion in cost savings, it said.

The investment plans come after Target said slower sales growth and rising operating costs hurt its profit in the most recent quarter, as shoppers continued to spend cautiously with inflation hitting their budgets.

Write to Kathryn Hardison at kathryn.hardison@wsj.com

(END) Dow Jones Newswires

February 28, 2023 13:44 ET (18:44 GMT)

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