Target budgets $3 billion for capital projects

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MINNEAPOLIS — Target Corp. is budgeting more than $3 billion in 2020 to maintain its recent pace of about 300 store remodels a year and to fund initiatives that include adding automation to its supply chain, diversifying its private label assortment and expanding its store pickup capabilities to include fresh groceries and alcoholic beverages.

Target also plans to test a 6,000-square-foot convenience-store concept and to open about three dozen additional small-format stores, officials revealed this month during the company’s annual meeting with investors.

“We’re opening stores near America’s most iconic tourist destinations: Times Square, Walt Disney World Resort and the Las Vegas Strip,” said Target chief executive officer Brian Cornell. “We learned from our store in Herald Square [in Midtown Manhattan] that there are few places that make travelers feel more at home than ­Target.”

Target said it opened its 100th small-format store last year, and the stores collectively contributed more than $1 billion in sales in 2019. Target intends to add drive-up capabilities this year at small-format stores that have parking lots. Fresh groceries are initially being added to its pickup services in the Minneapolis area and could be available at about half of its stores later this year. Alcoholic beverages will be available for pickup at more than 100 stores in Florida and Oregon this spring and at most Target stores by ­year-end.

Target will be opening convenience stores in urban neighborhoods where shoppers can find health and beauty essentials and also pick up merchandise ordered online.

Target also will test a new front-of-store layout designed to enhance shoppers’ first impression, with fresh flower displays, a curated product assortment and lower walls and counters, the company said. The layout will allow the company to present a compelling showcase for top brands, as well as dedicated spaces for the retailer’s tech consultants to help shoppers evaluate personal technology ­products.

“We’re proud of what we’ve accomplished, but we’ve got to stay humble, and we’re going to stay hungry if we want to stay ahead. That means ensuring our winning strategy continues to evolve as we test, as we scale, as we refine our multiyear initiatives, constantly challenging ourselves to develop new pathways for growth and innovation,” Cornell said. “We’ve done just that by elevating the shopping experience and winning with high-touch service, by curating and scale across our multicategory portfolio, a great mix of our guest-favorite national brands and Target exclusives.”



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