Target US ramps up revamp pace, boosts technology

Target US opened its newest small-format store in Midtown Manhattan’s Herald Square last week – and took the opportunity to announce a ramping up of the store’s rollout pace.

The Herald Square store was one of 12 stores to open across the US last week and Target says it plans to have more than 1000 of them trading by the end of 2020.

“As we open more small-format stores in new neighbourhoods across the country, we’ll be even closer to our guests, and our reimagined stores will provide elevated inspiration and ease, along with serving as hyperlocal distribution centers to fulfill digital orders faster,” said chairman and CEO Brian Cornell.

Target US is opening 32 new stores in 2017, with plans for another 35 next year. The retailer’s more than 1800 stores across the country are approximately 10 miles or less from three-quarters of all Americans.

In addition, Target is investing in differentiating its shopping experience by increasing store staffing and training to deliver elevated service and expertise.

“Target has made significant progress in our strategic priorities since announcing a meaningful investment in our business earlier this year,” said Cornell. “We’re elevating every aspect of how we serve our guests, including reimagining hundreds of stores, opening new small-format stores, introducing new and exclusive brands, pursuing an aggressive digital strategy and transforming the way we replenish our stores and get products to our guests. ”

Enhancing the in-store experience

Target Goodfellow

In addition to the 110 stores remodeled in 2017, Target plans to fully renovate more than 325 next year, 350 in 2019 and 325 in 2020. The reimagined stores will feature Target’s most ambitious store redesign to date, featuring modernised design elements, with an experience that’s easy and inspiring for guests. The hundreds of remodels planned will be customised, with guest feedback being applied to each new remodel.

Throughout this year, Target is allocating millions of payroll hours for increased training and staffing at its stores across the country. This includes training for the 100,000 seasonal team members Target plans to hire this year, as well as enhanced training in key departments, such as apparel, beauty, electronics and food and beverage.

Meanwhile, the new stores opening last week include 11 small-format stores located in New York, Chicago, Los Angeles, Philadelphia and Minneapolis, taking Target’s total of small-format stores to 55. The retailer is also opening a traditional store in Honolulu last week.

Leveraging technology

Target Herald Square US inside

Target US says it is continuing to accelerate enhancements in stores and digital to create a networked shopping experience, with stores, digital channels and supply chain working together to meet guests’ needs. This year, Target will offer guests additional digital fulfillment options by expanding Target Restock, introduced earlier this year, to guests nationwide.

Target’s digital investments include:

  • Same-day delivery: Allows for same-day delivery of in-store purchases, including fresh grocery, anywhere in Manhattan and to parts of Brooklyn and Queens. Same-day delivery was first tested at the Tribeca store in June and has now expanded to Target’s Herald Square, Brooklyn Bensonhurst and Brooklyn Fulton Street stores.
  • Target Restock: Beginning later this month, guests will have until 7pm to place their Restock order for next-day essentials delivery service currently available in 11 markets, including Atlanta, Chicago, Dallas, Denver, Los Angeles, Minneapolis, New York, Philadelphia, San Francisco, St. Louis and Washington, DC/Baltimore.
  • Drive Up: Earlier this year, Target began testing a fulfillment option called Drive Up, a new service through the Target app that enables guests to have their digital orders brought out to their cars by a store team member. Guests can shop via the Target app and access nearly 100,000 eligible items, including home furnishings, toys, electronics, household essentials, non-perishable food and baby-care items. After an initial pilot program this summer with headquarters team members, the retailer started offering Drive Up to guests throughout the Twin Cities area this month.
  • Target + Google Express: Target recently expanded its partnership with Google, including rolling out Google Express service nationwide and using stores to deliver items in just two days. Target will add new voice-activated shopping features and plans to offer Target RedCard payment as an option for guests in 2018.
  • Pinterest Visual Search: Target’s US retail-exclusive partnership with Pinterest will integrate the Pinterest Lens into Target’s registry and eventually Target’s app, allowing guests a faster product search.
  • Enhanced team member technology: This holiday, team members’ devices will be equipped to place guests’ orders online right from the sales floor and have the purchase shipped to their homes.

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