Target Ramping Up New Prototype Store

May 17, 2004
George Anderson

By George Anderson

Target said last week it was planning to ramp up the introduction of its newest prototype store, dubbed P2004. The format increases the role of food to drive store traffic while
reorganizing the store layout by complementary departments to make it easier for consumers to shop.

The retailer plans to have 200 P2004 stores, either new construction or remodels, operating by the end of the year, according to Reuters.

Target Stores President Gregg Steinhafel offered evidence of P2004’s success. “Early results from our most recent store openings in March are better than expected. We are moving
quickly to incorporate the essential elements into all remodels going forward,” he said.

Moderator’s Comment: What are your thoughts on Target’s new prototype store? Is Target intentionally downplaying the
potential of the revised format to try and catch competitors unaware?

Analysts were very hot on the P2004 and wanted more information. The thought is that the new prototype will help the chain increase the frequency of shopper

Target Corp.’s chief executive, Bob Ulrich, tried to temper some of the analysts’ exuberance saying, “Suffice it to say we’re very pleased initially, the
guests certainly like it, the results are good, but too preliminary to put too much weight at this time.”

George Anderson – Moderator

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