Target to Invest $4B for New Stores, Fulfillment Services
MINNEAPOLIS — Target Corp. (NYSE: TGT) has unveiled plans to invest approximately $4 billion annually during the next several years in an effort to accelerate new store openings and store remodels, as well as enhance its fulfillment services and strengthen the company’s supply chain. The Minneapolis-based retailer plans to increase its fresh and frozen food pickup assortment as well as launch adult beverage pickup in 800 more stores over the next few months.
Target will continue to incorporate brand partnerships, including the opening of approximately 100 Ulta Beauty “shop-in-shops” in 2021, with plans to add hundreds more over time. Building on its 15-year relationship with Apple, Target has introduced a new Apple shopping destination online and in 17 stores. More locations are scheduled to roll out this fall.
The discount retailer plans to open 30 to 40 new stores each year in urban centers, college campuses and dense suburban cities across the country. In urban centers such as New York City, Los Angeles and Portland, Target will open more small-format stores. It also plans to open small-format stores at the University of Georgia and University of Michigan. Target opened 30 new stores in 2020.
Target also expects to accelerate its store remodeling program this year, completing approximately 150 remodels in time for the holiday season. Beginning in 2022, the retailer plans to remodel more than 200 stores per year.
Additionally, Target is testing a sortation center in Minneapolis to add capacity to its fulfillment operation. The retailer expects to open five more of these in 2021. The sortation center collects online orders from local stores multiple times a day and sorts them into efficient routes for carrier delivery. The process increases store fulfillment capacity, reduces last-mile fulfillment costs and speeds delivery to guests, according to Target.
To support supply chain replenishment capacity, Target expects to open two distribution centers in Delaware and Chicago this year. Two more are planned in 2022 to support the East and West Coast areas.
Target operates nearly 1,900 stores across the country. Its stock price closed at $173.46 per share Wednesday, March 3, up from $107.82 per share one year ago.