Target has a multi-pronged approach for the future and the chain is hoping its strategic plan will help it achieve growth for the short-, medium- and long-term.
Yesterday the company announced in broad terms what it is looking to do to achieve its goals, including:
- Opening 10 fewer stores in 2010 than last year while investing $1 billion in the renovation of 340 existing locations;
- Continuing to expand grocery offerings in general merchandise stores;
- Improving the customer experience in key categories, such as beauty, home and consumer electronics (including video games);
- Testing a smaller store concept with limited assortments in space-constrained urban markets;
- Expanding outside the U.S. to Canada, Mexico and Latin American beginning no sooner than three years down the road.
"As we approach each of these growth opportunities, Target will apply the same rigorous financial discipline that we have applied historically, ensuring a returns-based approach and the prudent use of capital," said Gregg Steinhafel, chairman, president and chief executive officer of Target, in a press release. "We are excited about the growth potential for Target and believe we have the capital, talent, and right blend of discipline and innovation to deliver meaningful value to our guests and shareholders."
Discussion Questions: Where do you see the greatest opportunities for growth for Target? Where will it be challenged?