Target announced last month that it plans to close 12 stores on February 3, 2018. The company said that the closings are due to "several years of decreasing profitability." According to reports, none of the stores slated for closure are in the Greater Philadelphia or Northeast market.
Despite the closings, Target is significantly expanding its smaller format footprint, which Target CEO Brian Cornell has said are more profitable than their big box locations. Target has opened 32 smaller format stores this year and plans 35 more in 2018.
In addition, Target has also committed resources towards updating about 1,000 of its 1,800 stores by 2020.
Showing posts with label Brian Cornell. Show all posts
Showing posts with label Brian Cornell. Show all posts
Friday, December 22, 2017
Monday, March 27, 2017
Target unveils "reimagined" store design
Target unveiled its design last week for a "reimagined" 124,000 square foot store, the first of which is scheduled to open near Houston, TX in October. An additional 40 stores are slated to be redesigned during the same time period. Target plans to convert about 500 stores to the new design - or a similar design based on customer feedback - in 2018 and 2019.
According to Target Chairman and CEO Brian Cornell, the redesign will introduce separate entrances and parking for groceries and products ordered online, where employees will deliver the orders to customers in their cars.
The redesign also includes stenciled concrete floors, revised lighting and elevated merchandise presentations. The appearance of the grocery section will also be upgraded, and will include an expanded assortment of fresh produce and quick meal options.
Target employees in these locations will be equipped with mobile technology that will enable them to search inventory, take payment and arrange for delivery, all from the sales floor.
According to Target Chairman and CEO Brian Cornell, the redesign will introduce separate entrances and parking for groceries and products ordered online, where employees will deliver the orders to customers in their cars.
The redesign also includes stenciled concrete floors, revised lighting and elevated merchandise presentations. The appearance of the grocery section will also be upgraded, and will include an expanded assortment of fresh produce and quick meal options.
Target employees in these locations will be equipped with mobile technology that will enable them to search inventory, take payment and arrange for delivery, all from the sales floor.
Wednesday, March 15, 2017
Target investing in pricing, e-commerce, small format stores
Target announced that it plans to shift away from promotional pricing and back to every day low pricing as part of a $1 billion investment this year. The change in pricing is part of the company's overall strategy to enhance the in-store experience and leverage its stores as fulfillment centers for online orders.
CEO Brian Cornell said the investments in pricing will be spread throughout the store, but will begin with food, personal care and household essentials, "the trip-driving items our guests depend on every day," he said.
Target has been testing its food offerings at prototype stores in California and Texas, including transitions to daily delivery of produce.
In addition to Target's price investments, the company plans to remodel stores and open about 100 small-format stores in the next three years. The TargetExpress banner will be found mostly in urban markets, densely populated suburbs and college campuses. Currently there are 32 TargetExpress stores, all of which are highly tailored to suit the needs of the individual neighborhoods, the company said.
According to a story in Supermarket News, the small-format stores are part of Target's e-commerce strategy. Company executives reported that physical stores played a key role in fulfillment during the past holiday season, with 80% of online orders being picked up at stores.
These changes come in the wake of a sharp decline in profit in 2016. Net income fell 18.6% for the year, with sales down 5.8% to $69.5 billion.
CEO Brian Cornell said the investments in pricing will be spread throughout the store, but will begin with food, personal care and household essentials, "the trip-driving items our guests depend on every day," he said.
Target has been testing its food offerings at prototype stores in California and Texas, including transitions to daily delivery of produce.
In addition to Target's price investments, the company plans to remodel stores and open about 100 small-format stores in the next three years. The TargetExpress banner will be found mostly in urban markets, densely populated suburbs and college campuses. Currently there are 32 TargetExpress stores, all of which are highly tailored to suit the needs of the individual neighborhoods, the company said.
According to a story in Supermarket News, the small-format stores are part of Target's e-commerce strategy. Company executives reported that physical stores played a key role in fulfillment during the past holiday season, with 80% of online orders being picked up at stores.
These changes come in the wake of a sharp decline in profit in 2016. Net income fell 18.6% for the year, with sales down 5.8% to $69.5 billion.
Thursday, February 25, 2016
Target food sales growing faster than overall company sales
Target reported this week that comparable food sales grew faster in the fourth quarter than overall company sales. The company views this growth as validation of the changes it continues to make in food assortment, freshness and presentation.
Target also said that it expects the replacement of its own pharmacies with the CVS brand should help grow traffic in the pharmacies at a faster rate than the company would have been able to do on its own. Chairman and CEO Brian Cornell added that the deal with CVS has already provided over $1 billion in net cash that Target is using to support its capital deployment priorities.
Target also said that it expects the replacement of its own pharmacies with the CVS brand should help grow traffic in the pharmacies at a faster rate than the company would have been able to do on its own. Chairman and CEO Brian Cornell added that the deal with CVS has already provided over $1 billion in net cash that Target is using to support its capital deployment priorities.
Thursday, March 5, 2015
Target to test new approach to food
Target CEO Brian Cornell said on Tuesday that the company plans to transition "from grocery, which is transactional, to food, which is more personal and inspirational." This new approach will be tested this summer in Chicago, where the plan is serving as a pilot for the chain's new strategy.
Cornell also said that customers are telling Target that they are "looking for us to deliver a specialized assortment that is more natural, organic and gluten-free, with more localization and personalization... all merchandised in a more inspirational way."
(Editor's note: So, in other words, Target customers want a Whole Foods store.)
Cornell pointed out that food will not become one of the store's signature categories, but said that the company doesn't plan to minimize its commitment to food, which represents about 20% of the overall business.
Cornell also said that customers are telling Target that they are "looking for us to deliver a specialized assortment that is more natural, organic and gluten-free, with more localization and personalization... all merchandised in a more inspirational way."
(Editor's note: So, in other words, Target customers want a Whole Foods store.)
Cornell pointed out that food will not become one of the store's signature categories, but said that the company doesn't plan to minimize its commitment to food, which represents about 20% of the overall business.
Subscribe to:
Posts (Atom)