Target Outlines Plans for Future Growth
Target has a multi-pronged approach for the future and
the chain is hoping its strategic plan will help it achieve growth for the
short-, medium- and long-term.
Yesterday the company announced in broad terms
what it is looking to do to achieve its goals, including:
- Opening 10 fewer stores in 2010 than last year while investing
$1 billion in the renovation of 340 existing locations;
- Continuing to expand grocery offerings in general merchandise
- Improving the customer experience in key categories, such as
beauty, home and consumer electronics (including video games);
- Testing a smaller store concept with limited assortments
in space-constrained urban markets;
- Expanding outside the U.S. to Canada, Mexico and Latin American
beginning no sooner than three years down the road.
“As we approach each of these growth opportunities, Target will apply the
same rigorous financial discipline that we have applied historically, ensuring
a returns-based approach and the prudent use of capital,” said Gregg Steinhafel,
chairman, president and chief executive officer of Target, in a press release. “We
are excited about the growth potential for Target and believe we have the
capital, talent, and right blend of discipline and innovation to deliver
meaningful value to our guests and shareholders.”
Questions: Where do you see the greatest opportunities
for growth for Target? Where will it be challenged?