Target has announced it will seek to capitalize on its bumper 2020 by investing $4 billion a year "during the next several years" to expand its retail empire.
The Minneapolis retailer saw its sales rise $15 billion in 2020 – more than the past 11 years combined – as it cashed in as an "essential retailer" during the pandemic, and benefited from the massive shift to online sales.
And following the announcement of its 4th Quarter results, the company has released its plan for the next few years that among other things will see it "accelerate new store openings" and remodels.
The company opened 30 new stores in 2020 – 29 of them its small-format stores – and plans to accelerate this to open 30-40 new stores every year for the foreseeable future.
It is targeting "urban centers, college campuses, and dense suburban cities" across the country, naming the likes of New York, L.A., Portland, Denver, and Brooklyn among those likely to see expansions.
It'll also accelerate its store remodel program that has already seen many of its Twin Cities stores revamped. It's planning another 150 nationally by this holiday season, and will try to remove 200 a year starting in 2022, which will include "additional contactless features, updates that facilitate same-day fulfillment and more room for social distancing."
Its base in Minneapolis is also set for some investment too, with Target announcing it's currently testing a "new type of facility" here that it's calling a "sortation center," with a view to opening five more this year.
The sortation centers collect online orders from local stores several times a day, and "sorts them into efficient routes" for Target's same-day delivery carriers.
"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," the company says.
"This process increases store fulfillment capacity, reduces last-mile fulfillment costs and speeds delivery to guests."
Target will also expand the assortment of fresh and frozen food available in its Drive-Up and Pick-Up services.