Retailer todeliver 'affordable joy' throughanunparalleled assortment of owned brandsand a renewed focus on deal-conscious shoppers
Drive UpReturnsrolling outnationwidestarting thisspring,adding more easetotheguest shopping experience
Company to open about 20 new stores andmakeupdates toabout 175 existing locations
MINNEAPOLIS, Feb. 28, 2023 /PRNewswire/ -- Target Corporation (NYSE: TGT)today announced its plans for 2023 atthe retailer'sannual Financial Community Meeting in New York,emphasizing itsfocus on offering a differentiatedguestshopping experiencethat willcontinue to positionthe company for long-term growth.
Thecompanyplansto invest $4 billion to $5 billionthis yeartoexpand itsguest-centric services, operations networkof stores and supply chain facilities, digital experiences and other capabilities.The retaileralso shared more about its plans to advanceits enterprise efficiencyefforts,aimed atoptimizing its operations after years of rapid growth.
"Investments in our shopping experience andfrontlineteam havedeepened ourguests' engagement with Targetduringthe last few years, which is reflectedinour continuedtraffic and salesgrowth,"said Michael Fiddelke, chief financial officer of Target Corporation."This year, we'll continueinvesting 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 launchor expand more than 10owned brands, bringingthousands of new, differentiatedproducts to guests atincredible 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 toreturn 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 intheTarget app. Gueststhenfollow the normal Drive Up process to return their order,andwaitintheir car for a team member topick up andcompletetheir return.
In addition to making the Target guest experience even easier,Drive Up Returnsbrings more efficiency tothe retailer'sreturns process and reduces expenses for mail-in returns.
Opening more new stores andupdating 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 willincludenew design elementsthat 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 fromfull remodels tothe 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 areone way Target brings new partnerships andthe latest innovations infulfillment services to guests while also investing in operational enhancements for its team.
Expanding sortation center network
The company plans toexpandits sortation center networkfrom nine tomore than15 locations by the end of 2026, which will expand itsnext-day deliverycapabilitiesto guestsacross 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 toserve guests. Thislatestsortation center investment will create hundreds of additional jobs in major metro areas offering the retailer's market-leading wages.
Drivingefficiencies tofuelgrowth
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 workwillbe a sustainable, long-term plan, Target's goal is to achieve $2 billionto $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 atTarget.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 thecorporate websiteandpress centerand by following@TargetNews.
