Target to ‘reimagine’ 600 stores in effort to bring back customers

MINNEAPOLIS — Target on Tuesday announced it will spend more than $7 billion to grow sales faster, gain market share and adapt to guests’ rapidly changing preferences.

“We’re investing in our business with a long-term view of years and decades, not months and quarters,” said CEO Brian Cornell. “We’re putting digital first and evolving our stores, digital channels and supply chain to work together as a smart network that delivers on everything guests love about Target, including more than a dozen new brands we’ll introduce over the next two years. We’re confident our strategy meets the challenges of today and will lead us well into the future.”

The strategic plan comprises five steps: enhancing digital experience, reimagining stores, opening small-format stores, introducing exclusive brands and offering competitive prices every day.

Regarding the digital experience, “We’ve grown our digital infrastructure to increase speed, stability, performance and capacity, doubling our digital sales from 2013 to 2016, and we’ll continue to accelerate our efforts. For example, later this year, we’ll provide guests with a streamlined experience by combining Cartwheel—our popular savings app—with our flagship Target app, offering guests one simple shopping solution,” the company said.

In terms of reimaging stores, “Over the next three years, we’ll reimagine more than 600 locations. That’s great news for guests stopping by their local store for a new outfit or picking up tonight’s dinner, but it’s even more important to enabling a digitally connected Target experience.”

As for small-format stores, the company will open 30 small-format stores this year, doubling its presence in dense urban markets and on college campuses.

Looking at exclusive brands, 12 new exclusive brands in the apparel and home departments will be introduced.

Shifting to competitive prices, “Over the years, we’ve piled on the promotions. Now we’ll get back to increasing our focus on offering competitive prices across our entire assortment every single day.”

Target acknowledged this strategic effort will not be simple, but “we are in it for the long haul.”