Omnichannel

Target targeting differentiated guest shopping experience

Adobe Stock

March 15, 2023

This year Target is making investments to boost growth and provide customers with a differentiated guest experience. It aims to deliver "affordable joy" and a "renewed" focus on shoppers looking for a deal, according to a press release.

The plan includes rolling out drive-up returns nationwide, opening 20 stores and updating 175 locations.

The strategy was announced during the retailer's annual financial community meeting held in late February.

The company plans to invest $4 billion to $5 billion this year to expand its guest-centric services, operations network of stores and supply chain facilities, digital experiences and other capabilities.

"Investments in our shopping experience and frontline team have deepened our guests' engagement with Target during the last few years, which is reflected in our continued traffic and sales growth," Michael Fiddelke, CFO, said in the release. "This year, we'll continue investing in our long-term strategic initiatives that propel our market share and profit growth over time. Coupled with our teams' ongoing efforts to scale our business with greater simplicity, we are confident in our ongoing ability to meet the evolving needs of our guests and deliver value for our shareholders."

Target aims to provide value-conscious shoppers with more items starting at $3, $5, $10 and $15.

The drive-up return option allows guests to return most new, unopened items within 90 days of purchase from the comfort of a car — for free on purchases made through guests' Target.com accounts.

Many of the new stores planned will include new design elements that reflect the local community, experiences that highlight new brands, assortment and services, and sustainable features.

The company also plans to expand its sortation center network from nine to more than 15 locations by the end of 2026, which will expand its next-day delivery capabilities to guests across major U.S. markets.