In 2022, Target plans to open approximately 30 stores, reaching more guests in new neighbourhoods. The stores will range in footprint, from mid-size locations in dense suburban areas to small-format stores in city centres like Charleston, SC, and New York’s Times Square.
In addition to new stores, Target will build on the company’s remodel programme with 200 top-to-bottom renovations of its existing fleet, reaching more than half the chain since beginning this effort in 2017. On top of the full-store remodels, Target will complete hundreds of smaller projects across the chain to support the growth of its fulfilment services and expanding in-store brand partnerships, the company said in a media release.
“Years of investment in our team and business have driven our sales beyond $100 billion and positioned Target to meet the needs of our guests no matter how they choose to shop,” said Michael Fiddelke, chief financial officer, Target. “We see substantial opportunities to build on our core capabilities to drive deeper guest engagement and long-term growth.”
Target’s ongoing technology investments fuel growing digital capabilities like Roundel, which optimises advertising placements on Target.com to deliver a more relevant, personalised guest experience and create value for partners. Roundel drove more than $1 billion in value in 2021, and the company expects that to grow to over $2 billion in the next few years.
Since 2019, Target’s same-day fulfilment services have grown nearly 400 per cent, accounting for more than half of the company’s $13 billion digital growth. These services drive strong guest engagement and offer guests easy and convenient shopping options.
To add speed, efficiency and capacity to its fulfilment operation, Target continues to invest in sortation centres, which organise digital orders packed by local stores for fast neighbourhood deliveries. The company is expanding this model beyond Minneapolis, with five more facilities operating across Dallas, Houston, Austin, Atlanta and Philadelphia by spring and another five planned to open later this year. Sortation centres enable a next-day shipping capability in dense markets and allow the company to further scale its stores-as-hubs strategy.
Target also opened two new distribution facilities in 2021 to support the increased inventory flow to its stores. The company has another four facilities currently in development to expand supply chain capacity, with plans for several more in the next few years.
ALCHEMPro News Desk (KD)
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