Target Shares Roadmap to Transform Business
“Following a thorough, strategic review of our business, coupled with a
careful evaluation of the changing retail landscape, we have identified
the key initiatives that will put
The retailer’s differentiation in the marketplace will be driven by
stronger merchandising authority and a shopping experience that is
centered on ease and inspiration, with mobile serving as the front door
to all of
Target’s transformation roadmap includes the following areas of focus:
The retailer is taking a channel-agnostic approach to growing its
business, driving a total
Targetexperience across stores, online and mobile. Guests who shop Targetin stores and online generate three times the sales compared to guests who shop in stores only. Continued enhancements in technology, supply chain and inventory management will create a shopping experience that is rooted in ease and inspiration. This will help spur Target’s continued annual growth in digital channel sales of 40 percent, as well as contribute to a total projected sales growth of 2 to 3 percent and comparable sales growth of 1.5 to 2.5 percent in 2015.
Style, Baby, Kids and Wellness are being prioritized and will be the
Targetis famous for – the company will invest in these areas with a focus on newness and differentiation. In 2014, these four categories accounted for more than a quarter of Target’s sales. Other categories, including Grocery, are being repositioned to deliver a more compelling and appealing shopping experience.
Targetwill create a more guest-centric experience by tailoring its assortment and offering more locally relevant products, with demographics, climate, location and other guest-led factors driving merchandising decisions. Additionally, Targetwill strengthen its data and analytics and technology capabilities to deliver more personalized digital experiences, loyalty programs and promotional offers.
- Target’s store opening plans will increasingly focus on new, more flexible formats like TargetExpress and CityTarget, which cater to guests in rapidly-growing, dense urban areas. Throughout 2015, the retailer will open eight TargetExpress locations across the country. In addition, the company will continue to open the right stores to fit each community and test new layouts in its general merchandise stores.
Cost savings of
“While we’re in the early days and there’s no doubt that transformation can be challenging, we’re taking the steps necessary to unleash the potential of this incredible brand,” said Cornell. “I’m encouraged by our early momentum, and am confident that by implementing our strategy, simplifying how we work, and practicing financial discipline, we will ignite Target’s innovative spirit and deliver sustained growth.”
Statements in this release regarding growth rates in digital, comparable
and total sales, future cost savings related to management’s
transformation plan, and fiscal 2015 capital expenditures are
forward-looking statements within the meaning of the Private Securities
Litigation Reform Act of 1995. Such statements speak only as of the date
they are made and are subject to risks and uncertainties, which could
cause the Company’s actual results to differ materially. The most
important risks and uncertainties are described in Item 1A of the
Company’s Form 10-K for the fiscal year ended
Molly Snyder, 612-696-3400
John Hulbert, 612-761-6627