Internet, shminternet: Target adds, renovates stores as money pours in

Physical locations give retailer an “incredible advantage,” executive says

National /
Mar.March 02, 2021 02:58 PM
Target CEO Brian Cornell. (Getty)

Target CEO Brian Cornell. (Getty)

Target has hit the bullseye.

The big box retailer is adding and renovating stores as well as warehouses as it thrives in the competition with Amazon and other internet retailers.

The moves stem in part from Target’s stellar year: Its 2020 sales growth of more than $15 billion was greater than in the prior 11 years combined, the company announced Tuesday. Total revenue for the fourth quarter increased 21 percent to $28.3 billion.

The retailer this year plans to open a warehouse in New Jersey and another outside Chicago staffed by robots, similar to micro fulfillment centers recently announced by Walmart.

If the first one works out, Target expects to open five others this year.

Target will also renovate 150 stores this year — a plan that was paused when the pandemic hit. The Minnesota-based retailer did renovate two dozen stores and complete 29 small format stores last year, and plans to open 30 to 40 new stores annually, continuing a plan announced earlier this year.

Target ended 2020 with 1,897 locations, up from 1,868 in February 2020. While Amazon pursues an almost entirely online strategy and big-box retailers such as Best Buy reduce their real estate footprints as internet sales increase, Target believes stores help connect it with customers.

“The stores give us an incredible advantage” said Michael Fiddelke, executive vice president and chief financial officer, during an earnings call Tuesday.





    Related Articles

    arrow_forward_ios
    Dollar General CEO Todd Vasos (Retail Industry Leaders Association, iStock)
    Dollar General thrives amid retail apocalypse
    Dollar General thrives amid retail apocalypse
    (Getty)
    Manhattan retail market awaits recovery as vacancies rise in Q1
    Manhattan retail market awaits recovery as vacancies rise in Q1
    (Getty, iStock)
    McDonald’s to shutter hundreds of Walmart outposts
    McDonald’s to shutter hundreds of Walmart outposts
    The vacancy rate for regional and superregional malls is at an all-time high.  (Getty)
    Mall vacancy rate hits all-time high
    Mall vacancy rate hits all-time high
    38 Warren Street and CVS CEO Karen S. Lynch (Google Maps, CVS)
    CVS signs lease in Tribeca’s Keystone Building
    CVS signs lease in Tribeca’s Keystone Building
    15 W 55th owner Solly Assa. (Getty, Google Maps)
    Value of building at former Domenico Vacca flagship cut by 70%
    Value of building at former Domenico Vacca flagship cut by 70%
    Laurent Tourondel's  LT  Burger is scheduled to open its Westhampton location this summer. (Google Maps, Getty, LT Burger)
    LT Burger to open in Westhampton
    LT Burger to open in Westhampton
    Philip Williams Posters at 122 Chambers Street (Google Maps)
    Iconic Tribeca poster shop’s storefront is for lease
    Iconic Tribeca poster shop’s storefront is for lease
    arrow_forward_ios

    The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

    Loading...