Target Announces Plans to Get More Shoppers in Its Stores
Just one day after Wal-Mart announced its plans to cut grocery prices, Target said it will spend $2 billion this year and a total of $7 billion over three years to get more people into its stores. The plans include initiatives such as remodeling stores, launching more private label brands, price reductions and opening more small format stores — some of which were already in the works. However, CEO Brian Cornell said Target feels a renewed sense of urgency to quicken the pace of those changes and roll them out more quickly. "We're investing to win share — not surrendering," said Cornell. "There will be winners and losers in this new era in retail. This plan is all about coming out on top."
Total Retail's Take: Target's new plan proves the company is investing for the long-term retail game. Grocery is an increasingly competitive retail sector, and, in Target's earning call this week, Cornell said he's "very focused" on improving the grocery business and will be making sure the retailer is competitively priced in that department. Target also has been working to improve its fresh produce by making daily deliveries to stores instead of multiple times a week and testing new grocery displays and layouts in a few locations. Additionally, instead of closing stores, Target plans to open more stores — 30 this year, then accelerating the pace to 40 new stores a year by 2019 — and remodel existing stores that are "tired."