US department store retailer Target Corp is scaling up its use of robotics in a bid to increase the speed and efficiency of its supply chain.
In an update to its multi-year strategy, the retailer said it will begin scaling robotics solutions that have been in development and testing across the country to replenish inventory to hundreds of its stores by the summer of 2020.
The technology enables precise sorting on an aisle-by-aisle basis to help store team members fill shelves easier and faster while reducing backroom inventory. In 2020, Target says it will also open new warehouses near key markets, including New York and southern California, to more efficiently replenish stores in high-volume areas.
The update on its strategy also includes enhancements to its same-day services, and the addition of ‘Drive Up’ to dozens of small-format stores across the country that have parking lots. In addition, Target will begin exploring sites for stores that are around 6,000 square feet – roughly half the size of its smallest small-format store.
“Target is winning in the marketplace because of our differentiated investment strategy, durable financial model and our team’s incredible work in reinventing the Target run to deliver a shopping experience like nothing else in retail,” said CEO Brian Cornell. “As we look to 2020, we’ll continue to elevate our popular same-day services and expand our ambitious small-format and remodel programmes to create an even easier and more convenient experience.”
In its fourth-quarter, Target reported a 1.8% rise in total revenue to US$23.4bn and comparable sales growth of 1.5%. Earnings were up 4.4% to $834m. For the full year, total revenue reached $78.1bn, up 3.7%, while earnings rose 11.7% to $3.3bn.
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