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March 3, 2021

Target commits bold $4bn annual investment to scale capabilities

US retailer Target Corp is investing US$4bn annually over the next several years to scale its capabilities, including accelerating the pace of new store openings, enhancing fulfillment services and strengthening its supply chain.

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How attractive are current investment opportunities in Europe?

Europe has been identified as one of the most favorable regions for investors, seeing high investment activity in the past year. Most of these investments have been through Debt Offering, valued at close to $700 billion. The region has provided attractive investments in a diverse set of companies. Companies who tend to major themes such Digital Media, Cloud, Artificial Intelligence, E-commerce, and Big Data are recording the highest number of deals, with Digital Media recording close to 2,000 deals. However, GlobalData’s whitepaper offers a full view of the market, analyzing less successful or attractive points of investment as well, examining statistics on Equity Offering investments and PE/VC deals. Understand how government agencies for economies around the world use GlobalData Explorer to:  
  • Track the M&A and Capital Raising volumes into their target market
  • Identify the top sectors in the target market attracting the investments
  • For any investment segment, identify the top Investors inside and outside the target economy that are already investing in the Segment
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Don’t miss out on key market insights that can help optimize your next investment – read the report now.
by GlobalData
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Building on years of sales growth and a record 2020 financial performance, Target says the investments will scale key capabilities across its retail platform in order to “drive deeper engagement with new and loyal guests”, and to boost market share gains, and long-term, profitable growth.

Following 30 store openings in 2020, Target plans to accelerate the pace and open 30-40 new stores each year.

In urban centers such as New York City, Los Angeles and Portland, Target will open more small-format stores, while in dense suburban areas surrounding cities such as Denver or Brooklyn, the retailer has identified sites for new mid-size stores to serve new guests that fill retail gaps.

Target also expects to accelerate its store remodel programme this year and complete approximately 150 in time for the holiday season, with plans to remodel more than 200 stores a year beginning in 2022.

To add capacity to Target’s fulfillment operation and further scale its stores-as-hubs model, the company is testing a new type of facility in Minneapolis called a ‘sortation centre’ and expects to open five more in 2021.

With this new last-mile capability, the sortation centre collects online orders from local stores multiple times a day and sorts them into efficient routes for carrier delivery. This pulls the sorting activity out of store backrooms so it can be consolidated more efficiently at one facility, giving store teams more time and space to fulfill additional orders, while reducing the load on external carriers. This process increases store fulfillment capacity, reduces last-mile fulfillment costs and speeds delivery to guests.

The company is also making investments in its supply chain replenishment capacity to support stores’ continued growth well into the future. This year, Target expects to open two distribution centres, one in Delaware and one in Chicago. Two more are planned in 2022 to support the east and west coastal areas.

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Free Report
img

How attractive are current investment opportunities in Europe?

Europe has been identified as one of the most favorable regions for investors, seeing high investment activity in the past year. Most of these investments have been through Debt Offering, valued at close to $700 billion. The region has provided attractive investments in a diverse set of companies. Companies who tend to major themes such Digital Media, Cloud, Artificial Intelligence, E-commerce, and Big Data are recording the highest number of deals, with Digital Media recording close to 2,000 deals. However, GlobalData’s whitepaper offers a full view of the market, analyzing less successful or attractive points of investment as well, examining statistics on Equity Offering investments and PE/VC deals. Understand how government agencies for economies around the world use GlobalData Explorer to:  
  • Track the M&A and Capital Raising volumes into their target market
  • Identify the top sectors in the target market attracting the investments
  • For any investment segment, identify the top Investors inside and outside the target economy that are already investing in the Segment
  • Assess and showcase the growth potential for various Industries in the target economy
Don’t miss out on key market insights that can help optimize your next investment – read the report now.
by GlobalData
Enter your details here to receive your free Report.

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