Dive Brief:
- Leaning into larger footprints, Target will open six new locations in May across Arizona, Missouri, New Jersey and North Carolina, per a corporate fact sheet updated on Thursday.
- Five of the stores top Target’s 125,000-square-foot chain average, with two of those nearing 150,000 square feet.
- The mass retailer’s May openings add to its goal of opening 30 new stores in 2026 in addition to remodeling 130.
Dive Insight:
With a turnaround effort underway at the mass retailer, Target says it is on track to open 300 new stores by 2035. The new openings in May feature two stores in Arizona, one in Missouri, one in New Jersey and two in North Carolina.
The retailer’s broader turnaround strategy includes a $1 billion operational investment into the guest experience this year. The money will go towards making “more changes within all stores than any year in the last decade,” additional store payroll and training and more, per a March press release.
This is on top of a $5 billion capital expenditure investment in new stores, enhancements and more, which was announced in November.
A core aspect of Target’s turnaround strategy has been a focus on merchandise exclusivity and newness, which includes revamped store displays for categories such as baby and beauty. Company management has described the newness component as still in its early innings, according to a Friday note from Jefferies analysts.
“Home is progressing, while they’re intentionally not trying to be the destination in slow-turn big boxes (TVs, bikes), where shopping has shifted online, reducing displays and pulling select items from some stores,” the analysts said of their conversation with Target investor relations. “They highlighted exclusive moments (e.g., Pokémon) as examples of differentiated newness designed to reinforce ‘only-at-Target’ credibility.”
Target’s Q4 net sales dropped 1.5% year over year to $30.5 billion, per a March release. Comparable store sales decreased 3.9% and comparable digital sales increased 1.9% for the period. Target will no longer provide more detailed ongoing quarterly guidance, but anticipates net sales to increase about 2% for fiscal year 2026.
