Target Aims for 600 More Stores
By George Anderson
Target is on roll and the company’s chairman and chief executive, Bob Ulrich, said the retailer has an ambitious plan in place that will see it add 600 new stores over the next five years.
Beyond that period, said Mr. Ulrich, Target believes it can double its current number of stores (1,330) before it runs out of room to grow in the U.S.
The company is looking for available space in both urban as well as typical suburban locations. “We’re in the South Loop of Chicago. We’re in Brooklyn and we’re in Queens. We’re certainly looking at a lot of metro locations,” said Mr. Ulrich.
Experts warn that challenges lie ahead for Target as it pursues its growth strategy.
Joseph Beaulieu, a retail analyst at Morningstar, told the Minneapolis Star Tribune, “If Target really does double in size within the next decade, it will inevitably attract more attention from big labor, consumer advocates and city planning commissions.”
The retailer has already gotten the attention of the United Food and Commercial Workers Union (UFCW). The trade labor group staged a protest outside Target’s annual shareholders’ meeting and distributed leaflets claiming Mr. Ulrich made $19,050 an hour in 2004, compared to $13,000 a year for the average employee working in one of the company’s stores.
Moderator’s Comment: What is Target doing right that it should continue to build on and how do you believe it should deal with the inevitable challenges
such as big box building restrictions, unions, etc. that it will face as it grows? –
George Anderson – Moderator