Target has been on a major remodeling kick lately, with plans to update and rework as many as 1,000 stores across the U.S. by the end of 2020, which includes opening 130 new small-format stores nationwide by the end of 2019.
Target laid out a strategic plan in 2017 that calls for spending $7 billion over three years to refresh stores, revamp its private-label apparel and home brands, open more small-format urban stores and enhance its supply chain. The retailer already remodeled 110 stores in 2017, and expects to spend more than $1 billion to refurbish approximately 325 stores around the U.S. in 2018.
After the first 70 of Target’s newly remodeled stores saw an average 2% to 4% sales increase in 2017, CEO Brian Cornell announced that the retailer would accelerate the renovation goal from 600 stores by 2019 to 1,000 stores by 2020.
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Hyper-Focus On Their Own Backyard: Twin Cities
Based in Minneapolis, Target is spending $250 million to remodel 28 stores in the Twin Cities area, or approximately half the store footprint in the region, according to a report from The Minneapolis Star-Tribune. The store improvements include:
- A more prominent counter to pick up online orders;
- A “trend spot” near the entrance showcasing seasonal home goods and apparel;
- More self-checkout lanes; and
- New produce bins and grocery displays.
Renovated stores also will get updated flooring, LED and specialty lighting, more neutral (and less red) colors, and upbeat music streaming throughout. To ease consumer frustration during the renovation process, each store will have brand ambassadors whose main task will be to help guide customers through the store.
In the Twin Cities, 19 of the 28 stores getting upgrades are SuperTargets. Those remodels will be around $10 million each, compared to $5 million for the more typical-sized stores. Target has the goal to remodel the “great majority” of the Twin Cities stores by 2022, according to Mark Schindele, Senior VP of Properties at Target.
The new Target stores are expected to serve the consumer even if they buy online. The retailer splurged to acquire Shipt, a same-day delivery company, for $550 million in December, adding more value to Target stores beyond a typical shopping visit. With the Shipt service, Target stores can serve as distribution centers where drivers can pick up merchandise and deliver locally within hours.
