It’s massive! Leading retailer Target Corporation has plans to invest approximately US $ 4 billion annually during the next several years to continue scaling capabilities across its retail platform.
In a statement, it said that Target will accelerate new store openings and store remodels, enhance fulfillment services and strengthen its supply chain as it provides guests with a safe, easy and convenient shopping experience.
Following 30 store openings in 2020, including adding a record 29 new small-format stores in a single year, Target plans to accelerate the pace and open 30-40 new stores each year to meet community needs in urban centres, college campuses and dense suburban cities across the country.
It expects to accelerate its store remodel programme this year and complete approximately 150 in time for the holiday season, with plans to remodel more than 200 stores a year beginning in 2022.
The future store design will focus on safety and ease, with additional contactless features, updates that facilitate same-day fulfillment and more room for social distancing.
The company is also making investments in its supply chain replenishment capacity to support stores’ continued growth well into the future. This year, Target expects to open two distribution centres, one in Delaware and one in Chicago. Two more are planned in 2022 to support the east and west coastal areas.
“2020 was a record-breaking year thanks to the work of our team and their commitment to serving our guests amidst unprecedented demand. As we head into 2021, we are building on the aspects of our differentiated model that makes Target the preferred one-stop-shop for millions of guests (customers),” said Michael Fiddelke, CFO, Target.
He further added that the bold investments planned for the next few years will scale key capabilities across stores, fulfillment and supply chain to drive deeper engagement with new and loyal guests, continued market share gains and long-term, profitable growth.”
Apart from focusing on enhancing fulfillment services and store experience, technology improvements will also offer Drive Up guests a more personalised experience in the Target app.
Throughout the pandemic, guests have turned to Target for its multi-category assortment of owned and exclusive brands, national brand favourites and brand partnerships.
The retailer ended 2020 with 10 owned brands generating US $ 1 billion or more in annual sales each, four of which surpassed US $ 2 billion.
