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Target Expands Reach, Plans for Remodels and Restock Program

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Target Corporation unveiled the company’s newest small-format store in Midtown Manhattan’s Herald Square, one of 12 new stores opening across the country this week. The retailer also revealed plans to accelerate the number of store remodels to more than 1,000 by the end of 2020 and expand its Restock program nationwide next year. As part of the plan, 32 news stores will open their doors in 2017 with another 35 following in 2018. 

The store remodels will up the guest experience with the next generation of store design and a modernized feel. In addition to the 110 stores remodeled in 2017, Target plans to fully renovate more than 325 in 2018, 350 in 2019 and 325 in 2020. 

“Target has made significant progress in our strategic priorities since announcing a meaningful investment in our business earlier this year," affirms chairman and CEO Brian Cornell.  "We’re elevating every aspect of how we serve our guests, including reimagining hundreds of stores, opening new small-format stores, introducing new and exclusive brands, pursuing an aggressive digital strategy and transforming the way we replenish our stores and get products to our guests. As we open more small-format stores in new neighborhoods across the country, we’ll be even closer to our guests, and our reimagined stores will provide elevated inspiration and ease, along with serving as hyperlocal distribution centers to fulfill digital orders faster.”

Enhancing Store Experience and Investing in Store Teams

At its Financial Community Day meeting in February, the retailer revealed it will make significant investments in its store teams. Throughout 2017, Target is allocating millions of payroll hours for increased training and staffing at its stores across the country. This includes training for the 100,000 seasonal team members the retailer plans to hire this year, as well as enhanced training in key departments, such as Apparel, Beauty, Electronics and Food and Beverage. In doing so, the retailer is building an expert salesforce, with team members who specialize in one area of the store and can provide credible guidance, product knowledge and personalized service to guests, ultimately driving incremental sales, officials said. These additional payroll hours also ensure that guests experience quality service during peak periods of increased traffic, such as weekends and the holiday season.

Continued Expansion of New Stores

Target’s new stores opening this week include 11 small-format stores located in New York, Chicago, Los Angeles, Philadelphia and Minneapolis, bringing Target’s total of small-format stores to 55. The retailer is also opening a traditional store in Honolulu this week.

The retailer is accelerating the pace of opening new small-format stores to serve new guests in dense urban and suburban areas and on college campuses. By the end of 2019, Target plans to operate more than 130 small-format locations nationwide, including its first Vermont location in South Burlington, slated to open in fall 2018. Additionally, Target will expand its same-day delivery service in New York City to three locations —Herald Square, Brooklyn Bensonhurst and Brooklyn Fulton Street— in addition to offering the service at its Tribeca location. Guests have the option to have their in-store purchases delivered later that day anywhere in Manhattan and to parts of Brooklyn and Queens in a two-hour timeframe, for a small fee.

Digital Gains

Target continues to accelerate enhancements in stores and digital to create a networked shopping experience, with stores, digital channels and supply chain working together to meet guests’ needs. In 2018, Target will offer guests additional digital fulfillment options by expanding Target Restock, introduced earlier this year, to guests nationwide.

Target’s digital investments include:

  • Same-Day Delivery: Allows for same-day delivery of in-store purchases, including fresh grocery, anywhere in Manhattan and to parts of Brooklyn and Queens. Same-day delivery was first tested at the Tribeca store in June and will expand to Target’s Herald Square, Brooklyn Bensonhurst and Brooklyn Fulton Street stores on Oct. 20.
  • Target Restock: Beginning later this month, guests will have until 7 p.m. to place their Restock order for next-day essentials delivery service currently available in 11 markets, including Atlanta, Chicago, Dallas, Denver, Los Angeles, Minneapolis, New York, Philadelphia, San Francisco, St. Louis and Washington, D.C./Baltimore. Restock will expand to more major markets early in 2018 and nationwide by the end of the year.
  • Drive Up: Earlier this year, Target began testing a fulfillment option called Drive Up, a new service through the Target app that enables guests to have their digital orders brought out to their cars by a store team member. Guests can shop via the Target app and access nearly 100,000 eligible items, including home furnishings, toys, electronics, household essentials, non-perishable food and baby-care items. After an initial pilot program this summer with headquarters team members, the retailer started offering Drive Up to guests throughout the Twin Cities area this month.
  • Target + Google Express: Target recently expanded its partnership with Google, including rolling out Google Express service nationwide and using stores to deliver items in just two days. Target will add new voice-activated shopping features and plans to offer Target REDcard payment as an option for guests in 2018.
  • Pinterest Visual Search: Target’s U.S. retail-exclusive partnership with Pinterest will integrate the Pinterest Lens into Target’s registry and eventually Target’s app, allowing guests a faster product search.
  • Enhanced Team Member Technology: This holiday, team members’ devices will be equipped to place guests’ orders online right from the sales floor and have the purchase shipped to their homes.

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